The payments giant attributed the 37% year-over-year growth to higher market prices and more BTC sales to customers.

Jack Dorsey-founded payments firm Block (SQ) reported third-quarter earnings on Thursday with total net revenue up 24% year-over-year to $5.62 billion.

Excluding bitcoin (BTC) revenue, net revenue was $3.19 billion, meaning the company earned more than $2.4 billion on bitcoin during the period that ended on September 30.

In its letter to shareholders, Block revealed that bitcoin gross profit was $45 million in the quarter. Block sold $2.42 billion to customers, up 37% on the year, which the company recognizes as bitcoin revenue under its CashApp division.

Block attributed the growth in bitcoin revenue and gross profit to an increase in both the average market price of the digital asset and the quantity of bitcoin that Block sold to customers.

Block notes that the accounting rules for bitcoin require the company to recognize any market price decreases below its carrying value as an impairment charge. No upward price revisions are recognized until Block sells the bitcoin.

Block shares are currently up 12.5% to $49.46 because the company topped earnings expectations and raised its full-year guidance.