Block Reports Hit to BTC Revenue: Analyst Says ‚It Doesn’t Matter‘

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• Block Inc (NYSE: SQ) reported a 7.0% decline to its fourth quarter bitcoin revenue.
• Baird’s senior analyst David Koning said “Bitcoin mattered when Block was at $250 a share. At $70, it doesn’t matter. It’s 4.0% of gross profit.”
• Block Inc is now calling for $1.30 billion of adjusted EBITDA and their forecast for gross profit sits at 25%.

Analysis on Quarterly Update of Block Inc.

Decline in Bitcoin Revenue

Block Inc (NYSE: SQ) reported a 7.0% decline to its fourth quarter bitcoin revenue due to the slump in bitcoin price. BTC generated $35 million of gross profit for Block Inc in Q4 – a 25% year-on-year decline related to the slump in bitcoin price. As of December 31st, the company’s bitcoin holdings had a fair value of $133 million.

Reaction from Baird’s Senior Analyst

Baird’s senior analyst David Koning shared his outlook on the stock, saying: „Bitcoin mattered when Block was at $250 a share. At $70, it doesn’t matter. It’s 4