- Block didn’t see an impairment loss on its bitcoin holdings in Q1.
- Analysts at KeyBanc continue to see upside in its shares to $85.
- Block stock is currently down about 5.0% versus the start of 2023.
Block Inc says it did not see an impairment loss related to its bitcoin hoard in the first financial quarter. Shares are trading up in extended hours.
Bitcoin price recovery helped
The surge in BTC this year pushed the fintech company’s bitcoin revenue in Q1 to $2.16 billion – up 18% sequentially and a whopping 25% versus the same quarter last year.
Gross profit from bitcoin holdings also increased 43% versus the previous quarter, as per its letter to shareholders. Block generated $770 million of total gross profit in its recently concluded quarter – up 16% on a year-over-year basis.
The fair value of its position in bitcoin was $229 million as of March 31st versus the original purchase price of $220 million.
Year-to-date, Block stock is down about 5.0% at writing.
Should you buy Block stock now?
Block ended the quarter with 20 million monthly active users on “Cash Card” – up 34%. Earlier this week, K33 analyst Vetle Lunde noted the similarity in how bitcoin is performing this year and how it recovered after the bear market of 2018-2019.
If it continued on the same trajectory, he added, bitcoin could be worth as much as $45,000 in the coming weeks which could be a significant benefit to Block Inc both in terms of its financial performance as well as the share price.
Those interested in buying Block stock today should also know that analysts at KeyBanc continue to see upside in it to $85 – up roughly 40% from here.
Other notable bulls of the financial technology company include Cathie Wood – the Founder and Chief Executive of Ark Invest.