This digital asset broker reported an over 600% increase in revenue
- GlobalBlock reported $0.65 million in revenue for its fiscal third quarter.
- The digital asset broker remained in loss on a nonrecurring cost of $1.79 million.
- Shares of GlobalBlock opened more than 5.0% up on Tuesday morning.
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Shares of GlobalBlock Digital Asset Trading Limited (TSXV: BLOK) opened more than 5.0% up this morning on a significant increase in its unaudited Q3 revenue.
Reason for Q3 loss
For the UK based digital asset broker, it was the first financial statement that included results from GlobalBlock Limited (GlobalBlock UK) – its wholly-owned operating subsidiary that it acquired in July 2021.
The business combination resulted in a nonrecurring cost of $1.79 million in the recent quarter, which is why GlobalBlock remained in loss despite a remarkable surge in revenue.
According to the TSXV-listed firm, its revenue printed at $0.65 million in Q3 on $2.53 million in loss. On a year-over-year basis, revenue was up 612%, thanks to higher trading volumes and added clients.
Interestingly, the massive surge in revenue came in without marketing and spoke volumes about the broader adoption of cryptocurrencies as a new asset class.
GlobalBlock to launch a new mobile app
In the press release, CEO Rufus Round said GlobalBlock will launch a new mobile app and ramp up its marketing efforts early next year.
The speed with which GlobalBlock UK has yielded meaningful revenues has exceeded our expectations. There is a great deal of activity, and the pipeline for sales, new products, and services is full. We’re looking forward to the launch of a new wholly-owned mobile app in Q1 of 2022.
GlobalBlock had $6.1 million in working capital as of September 30th and $5.7 million in cash on hand. This compares to $4.3 million in working capital and $4.4 million in cash on hand at the start of the year.
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