Block Inc, best known as the fintech and payments company, saw its bitcoin revenue surge in Q1, resulting in a significant increase in its bitcoin holdings. This sent Block’s stock soaring in extended hours trading.

The company’s bitcoin revenue in Q1 was $2.16 billion, growing by 18% sequentially and 25% year-over-year. This helped Block post a total gross profit of $770 million in the recently concluded quarter, up 16% year-over-year.

The fair value of its position in bitcoin stood at $229 million as of March 31st, as opposed to the original purchase price of $220 million.

Year-to-date, the stock is down 5.0% although analysts at KeyBanc and Cathie Wood of Ark Invest continue to remain bullish on Block, seeing upside of 40% and 85% respectively. Meanwhile, K33 analyst Vetle Lunde noted the similarity between bitcoin's performance this year and its relative recovery after the bear market of 2018-2019, suggesting that BTC may be worth as much as $45,000 in the near future, which could be of great benefit to Block.

In sum, Block has gotten a significant boost from its bitcoin holdings and its resulting prosperity in the first quarter of 2021. Its stock has seen a 5.0% dip year-to-date so far, however, analysts and investors retain bullish sentiments on the stock, anticipating that it could enjoy significant gains in the near future.



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