Block reports a 7.0% decline in its fourth quarter bitcoin revenue. Baird analyst David Koning shares his outlook on the Block stock. Shares of the financial technology company are up 15% year-to-date.

Shares of Block Inc (NYSE: SQ) are trading up in extended hours even though the financial technology company reported a year-over-year decline in its bitcoin revenue.

The San Francisco-based multinational noted a 7.0% hit to its bitcoin revenue in the recent quarter. Reacting to it on CNBC’s “Closing Bell: Overtime”, 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. I haven’t even looked closely at it, that’s how much it matters.

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.

In its letter to shareholders, Block revealed a $9.0 million impairment charge related to its BTC investment in Q4 versus $2.0 million only in the prior quarter.

The stock is still trading up primarily because former Twitter CEO Jack Dorsey’s firm reported overall quarterly revenue that came in slightly above the consensus. Baird’s Koning added:

Cash App crushed it. They accelerated well above the Street. And January and February trends accelerating very nicely. Street’s modelling deceleration in Q1. So, the stock should be up nicely tomorrow.

His price target of $85 a share suggests about a 15% upside on where this stock closed the regular session today. For the full year, Block Inc is now calling for $1.30 billion of adjusted EBITDA. Its forecast for gross profit sits at 25% versus 22% in the recent quarter.

The post Analyst says ‘it doesn’t matter’ as Block reports a hit to BTC revenue in Q4 appeared first on CoinJournal.

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