As a result of the highly unpredictable bitcoin market and increasing online retail, Twitter Inc (TWTR.N) founder Jack Dorsey’s payments business, Block Inc (SQ.N), recorded better-than-expected fourth-quarter earnings, sending its shares surging.
For the first time, the firm that owns Australia’s most popular payment service, Afterpay, has taken a secondary stock market listing in that country. While Block’s New York Stock Exchange listing closed at the end of trading, the company’s Australian stock surged as much as 40 percent, making it the largest gainer in a flat market.
Prior to this decision, internet-related enterprises had seen their valuations plummet as investors braced themselves for higher rates and a reduction in government stimulus funds owing to the relaxation of COVID-19 regulations. Previously known as Square, Block announced plans to acquire Afterpay in August. With a two-thirds drop in share price by January’s deal closure, shareholders of the Australian company saw their stock’s worth plummet.
Both RBC Capital Markets and Jeffries had forecast a lower pre-tax profit for the fourth quarter, which did not include Afterpay. The company’s “gross profit” increased by 47 percent to $1.18 billion during the third quarter from $3.16 billion a year earlier.
Square, the company’s unit that provides payment terminals and software to small businesses, made $657 million in gross profit, an increase of 54 percent. Cash App’s gross earnings increased by 37% to $518 million, allowing users to transmit payments in a variety of cryptocurrencies, including bitcoin.
Cash App produced $1.96 billion in bitcoin income in the third quarter, an increase of 12 percent over the same period last year, despite the volatility of the cryptocurrency. In addition to being the company’s founder, Dorsey holds a significant stake in Block and serves as the company’s chairman.
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