Jack Dorsey-Led Block Posts $1.5 Billion in Q2 Profits as BTC Revenue Falls
Block Inc. posted $1.47 billion in Q2 profit, but BTC trading services profit was only $41 million of that figure, with the company citing price volatility and lack of consumer demand.
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Former Twitter CEO Jack Dorsey's digital payments business, Block Inc., saw its year-on-year (YoY) earnings soar 29% to $1.47 billion in the second quarter , although its bitcoin business slumped due to lower customer demand and a falling bitcoin (BTC) price.
The financial services company primarily generates Bitcoin revenue by providing BTC trading services through its Cash App digital payment application.
Block Inc. noted that the company generated $1.79 billion in Bitcoin revenue during the quarter, down 34% year-on-year, while Bitcoin gross profit was only $41 million, suggesting that providing Bitcoin services to its customers could be an expensive business. .
Block Inc. said Bitcoin's decline in revenue was attributed to "greater uncertainty" in crypto assets, stating:
“The year-over-year decline in bitcoin revenue and gross profit was primarily due to lower consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the volatility benefit in the price of Bitcoin during the quarter.”
However, Block Inc. pointed out that BTC's earnings slump did not reflect the company's overall performance. He also noted that BTC profits will likely fluctuate over time due to "changing customer demand or the market price of Bitcoin".
The company also noted that it recognized a $36 million impairment loss on its BTC holdings, but this is likely just a loss on paper.
Under US accounting procedures, crypto is classified as an intangible asset on balance sheets and companies must report a loss when the price of the asset falls below its cost base, even if a gain or loss was realized through a sale during the given quarter.
The company noted that as of June 30, 2022, the fair value of its inve...
Block Inc. posted $1.47 billion in Q2 profit, but BTC trading services profit was only $41 million of that figure, with the company citing price volatility and lack of consumer demand.
New
Former Twitter CEO Jack Dorsey's digital payments business, Block Inc., saw its year-on-year (YoY) earnings soar 29% to $1.47 billion in the second quarter , although its bitcoin business slumped due to lower customer demand and a falling bitcoin (BTC) price.
The financial services company primarily generates Bitcoin revenue by providing BTC trading services through its Cash App digital payment application.
Block Inc. noted that the company generated $1.79 billion in Bitcoin revenue during the quarter, down 34% year-on-year, while Bitcoin gross profit was only $41 million, suggesting that providing Bitcoin services to its customers could be an expensive business. .
Block Inc. said Bitcoin's decline in revenue was attributed to "greater uncertainty" in crypto assets, stating:
“The year-over-year decline in bitcoin revenue and gross profit was primarily due to lower consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the volatility benefit in the price of Bitcoin during the quarter.”
However, Block Inc. pointed out that BTC's earnings slump did not reflect the company's overall performance. He also noted that BTC profits will likely fluctuate over time due to "changing customer demand or the market price of Bitcoin".
The company also noted that it recognized a $36 million impairment loss on its BTC holdings, but this is likely just a loss on paper.
Under US accounting procedures, crypto is classified as an intangible asset on balance sheets and companies must report a loss when the price of the asset falls below its cost base, even if a gain or loss was realized through a sale during the given quarter.
The company noted that as of June 30, 2022, the fair value of its inve...
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