Block, Jack Dorsey's company, reports $1.8 billion in Bitcoin revenue, profit down 50%

Block, Jack Dorsey's company, achieved $1.8 billion in revenue from its bitcoin ecosystem in the third quarter, representing a decrease of about 11% compared to the previous year. Gross profit was only $52 million, a drop of 50% from $104 million in the same period last year. The main reason for the decline in profits is the reduced BTC transaction fees in the Cash App. The bitcoin-related ecosystem generated 26.8% of the group's total revenue but only 1.6% of gross profit, indicating that the gross margin fell from 5.1% to 2.9%. Additionally, Block revealed that it has agreed on preliminary terms of a settlement with the U.S. Department of Justice regarding allegations of an ineffective anti-money laundering program, which could cost the company about $764 million. In the same quarter, Block recorded a $229.7 million accounting gain from the revaluation of its own bitcoins.

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