Block reports $2.43 billion in Bitcoin revenue since July from $63 billion total Cash App inflows

Block, the digital payments company formerly known as Square, reported higher revenue and profit in the third quarter as growth in its Cash App and Square ecosystems offset macroeconomic challenges.

The San Francisco-based company said late Thursday, Nov. 2, that its total net revenue rose 24% to $5.62 billion for the July-September period. Excluding revenue from bitcoin, which Block facilitates for its Cash App customers to buy and sell, Block’s revenue was $3.19 billion, up 16% from a year earlier. It reported a net income loss of $29 million, or 5 cents per share, up slightly from a loss of $15 million, or 2 cents, a year earlier.

Block’s core businesses center around small businesses and consumers, who are being squeezed by inflation and other economic woes. However, the company has expanded into other financial services for consumers, which helped boost results in the latest quarter.

Block CEO Jack Dorsey said in his statement,

“We’ll measure ourselves by our commitment to take the long view and focus on building a company that creates value over decades and not just a few fiscal quarters out.”

Block’s gross payment volume – the total dollar amount rung up on its services – rose 10% YoY to $60.8 billion in the latest quarter. That metric was helped by the popularity of Block’s Cash App peer-to-peer payment service with consumers. Cash App generated $4.38 billion in gross payment volume during the quarter, up 1% from a year earlier.

The company’s Square ecosystem, which provides financial services and point-of-sale hardware and software for small businesses, saw gross payment volume rise 11% YoY to $55.69 billion.

Block said subscription and services-based revenue rose 28% to $1.23 billion during the third quarter, led by growth at Cash App. Transaction-based revenue grew 9% to $1.66 billion, reflecting growth at Square. Bitcoin revenue, defined as “the total sale amount of bitcoin sold to customers,” grew 37% to $2.42 billion, with CashApp generating $45 million in Bitcoin gross profit.