Block shares jump 7.9% as BTC write-down hits Q1 loss

Block (BTC-exposed) reported a Q1 2024 net loss of $309M, driven largely by a BTC impairment charge of $172.8M tied to its 8,883 BTC holdings after a 23.8% BTC drop in the quarter. Despite the loss, Block shares rose about 7.9% in after-hours trading to around $75.70, and EPS of 85 cents beat expectations. The fiscal impact was mixed for Block: gross profit rose 27% to $2.9B. However, Bitcoin-linked transaction revenue fell year-on-year from $2.33B to $1.8B, attributed to BTC price volatility and lower Cash App Bitcoin transaction fees. Block also adjusted (revised) its outlook upward. For crypto traders, Block’s update suggests market sentiment can remain resilient even with BTC-linked accounting pressure. On payments adoption, more than 800,000 US businesses could accept Bitcoin by late April. On the demand/monetization side, costs climbed sharply: operating expenses rose 57.2% to $3.08B, including February job cuts of about 4,000 staff and a push toward AI-driven automation. Block also continued expanding its BTC product stack: verifiable reserves, the Bitkey touchscreen hardware wallet, automated conversion in Cash App, higher merchant cashback (5%), and increased customer withdrawal limits. Net: short-term volatility for BTC remains a key swing factor, while Block’s BTC infrastructure and adoption efforts could support medium-term sentiment.