Block Stock Skyrockets After Strong Q1 Earnings and Strategic Bitcoin Investment: All the Details

Block, Inc. (NYSE:SQ) saw its stock soar after reporting impressive first-quarter earnings and announcing a strategic investment in Bitcoin. The company’s quarterly sales of $5.957 billion exceeded analyst expectations, marking a 19.38% increase from the previous year.

In addition to strong sales, Block reported adjusted earnings of 85 cents per share, surpassing the consensus estimate of 72 cents per share. Cash App generated a gross profit of $1.26 billion, up 25% year over year, while Square generated a gross profit of $820 million, up 19% year over year. The company’s first-quarter gross payment volume reached $54.43 billion.

One of the most significant announcements was Block’s strategic investment in Bitcoin. The company implemented a Bitcoin dollar cost average purchase program that will run through 2024, with plans to invest 10% of its gross profit from Bitcoin products in Bitcoin purchases. CEO Jack Dorsey highlighted the company’s belief in investing in the overall asset of the ecosystem and holding Bitcoin in its treasury.

Looking ahead, Block expects second-quarter gross profit to range from $2.165 billion to $2.185 billion. Following the news, Block shares surged 8.15% after hours to $76.01 at the time of publication.

The company’s strong financial performance and strategic Bitcoin investment have captured the attention of investors, positioning Block for continued growth and success in the future.