Block Inc. saw its shares climb 8% in after-hours trading Thursday after the company reported first-quarter earnings that topped analyst expectations—even as a $309 million net loss tied to Bitcoin mark-to-market revaluation weighed on the bottom line.
Earnings beat the street
Block's Q1 revenue and adjusted earnings came in ahead of consensus estimates, sending the stock above $90 in extended trading. The company didn't break out segment details in the brief earnings release, but the topline numbers were enough to reverse a recent slide.
Bitcoin revaluation hits the P&L
The $309 million net loss is almost entirely attributed to a non-cash impairment charge on Block's Bitcoin holdings. Under current accounting rules, companies must mark their digital assets down when prices fall, but can only write them back up upon sale. Bitcoin traded in a volatile range during the quarter, triggering the charge.
Why the market doesn't care
Investors shrugged off the red ink—the revaluation loss doesn't affect cash flow or Block's core payments business. The after-hours surge suggests the market was more focused on the underlying operational strength. Block now carries roughly $573 million in Bitcoin on its balance sheet, according to its most recent filing, making quarterly swings like this one a recurring feature of its earnings.
Block shares were trading near $92 in late after-hours action, up about 8% from Thursday's close.
