by Coinstrooper Crypto Articles
Quick Take
  • Block, Circle and Riot Platforms report third-quarter earnings this week, covering a July-to-September stretch when crypto prices climbed.
  • The reports land days after Binance disclosed a $6.3 billion hack.
  • Block goes first, and its crypto exposure runs through Cash App and the Bitcoin (BTC) on its balance sheet.
  • The firm reports Tuesday, November 3, after the close, with a call at 5 p.m.

What Happened

The reports land days after Binance disclosed a $6.3 billion hack. All three stocks also closed lower on Friday.

Market Context

Block, Circle and Riot Platforms report third-quarter earnings this week, covering a July-to-September stretch when crypto prices climbed.

Block tied the decline to lower fees on some Cash App Bitcoin transactions and to Bitcoin trading dynamics.

Block also marks its BTC holdings to market each quarter, so price swings flow into net income. A higher BTC price on September 30 than on June 30 would show up as a gain.

Circle reports the next morning, and its results hinge on USDC supply and interest rates rather than token prices.

Why It Matters

Analysts expect EPS of $1.02 on revenue of $6.63 billion, per Zacks.

Analysts expect Bitcoin revenue to keep shrinking. Zacks consensus puts it at $1.73 billion for Q3, down 12.2% from a year earlier.

Shares fell 6.15% on August 6, the session after Block’s Q2 beat and guidance raise. The $1.02 EPS estimate matches Block’s own Q3 guidance, so simply hitting it may not lift the stock.

Analysts expect EPS of $0.40, down 37.5% year over year, on revenue of $796.95 million, per Zacks.

Zacks expects Q3 revenue to rise 7.7% from a year earlier, even as EPS falls. USDC in circulation stood at $73.3 billion at the end of June.

Riot reports the same morning, and analysts expect mining to bring in $112.85 million of its $161.46 million revenue.

Details

Block Opens the Week After Its Last Beat Sent Shares Lower

Block goes first, and its crypto exposure runs through Cash App and the Bitcoin (BTC) on its balance sheet.

The firm reports Tuesday, November 3, after the close, with a call at 5 p.m. ET.

The stock closed Friday at $76.22, up 17.10% from its December 31 close.

Bitcoin makes up about 2% of Block’s profit. In its Q2 letter, Block reported $72 million in Bitcoin Ecosystem gross profit, down 31% year over year. Total gross profit was $3.17 billion.

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Circle Needs USDC Growth to Outrun Falling Rates

The stablecoin issuer reports Wednesday, November 4, before the open, with a webcast at 8 a.m. ET.

The stock closed Friday at $72.54, down 8.52% from its December 31 close.

Circle earns most of its money on the reserves backing USDC (USDC). Its Q2 release showed reserve income up 5% to $668 million.

Average USDC supply grew 25% from a year earlier. However, the reserve return rate fell 66 basis points to 3.5%, which absorbed most of that growth.

The September 30 figure is the one to watch, since it sets the starting base for fourth-quarter reserve income. Circle shares also dropped 9.3% on Friday, the steepest fall of the three heading into earnings.

Riot Tests Whether the Q3 Rally Reached Mining Revenue