Gate – Quartz

Cryptocurrency exchange Coinbase and Jack Dorsey’s Block announced record earnings reports on Thursday, pushing Bitcoin’s price back above $61,000 on Friday morning.

The quarterly results showed how much confidence crypto companies have in Bitcoin. Coinbase shares were down 1.5% Friday morning, while Block shares were up about 6%.

Bitcoin boom fuels Coinbase’s growth

Coinbase reported earnings of $4.40 per share compared to analyst estimates of $1.15 per share. The company had revenue of $1.64 billion, compared to average estimates of $1.36 billion.

In the quarter, consumer transaction revenues reached $935 million, an increase of more than 100% compared to the prior year. In total, $1.08 billion in transaction revenue was generated, almost triple the previous quarter.

Although cryptocurrency exchange was in the crosshairs of the Securities and Exchange Commission to sell unregistered securities, Spot Bitcoin ETFs approved in Q1 2024 by the financial supervision authority – which also benefited the company as Bitcoin and the cryptocurrency market have skyrocketed. AND Coinbase has partnered with BlackRock to provide infrastructure for its cryptocurrency fund.

Block plans to buy more Bitcoins

Block announced in its latest earnings report that it will allocate 10% of its gross profit from Bitcoin products to buy Bitcoin every month.

Block reported revenue of $5.96 billion, surpassing analyst estimates of $5.75 billion. The company’s earnings per share were $0.85, beating expectations of $0.62 per share. In the first quarter, the company’s gross profit increased 22% on the year to $2.09 billion.

At the end of March, Block held 8,038 Bitcoins worth $573 million.

“The Internet will have a native currency; it is only a matter of time,” Dorsey wrote in a May 2 letter to shareholders.

“AI systems and agents will need to transact,” he added, “and the most efficient way to do this will be through a common money flow protocol.”

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