Shares of GlobalBlock Digital Asset Trading Limited (CVE: BLOK) opened more than 5.0% up this morning on a significant increase in its unaudited Q3 revenue.
Reason for Q3 loss
For the Toronto-based company, 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, however, 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 Canadian company that designs and develops blockchain technologies and applications, 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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