The payment technology firm Block (formerly known as Square) revealed that its bitcoin revenue for the second quarter was approximately 34% more than the figure reported in Q2, 2022.
The company, spearheaded by Twitter’s former CEO Jack Dorsey, is a main player on the crypto scene, owning over 8,000 BTC.
Q2’s Solid Numbers
Block revealed that its mobile application that enables monetary transfers – Cash App – generated a bitcoin revenue of $2.39 billion in Q2, 2023. The sum is approximately 34% higher than the nearly $1.8 billion registered in the second quarter of last year. Cash App’s BTC gross profit equaled $44 million, up 7% year-over-year.
“The year-over-year increase in bitcoin revenue and gross profit was driven by an increase in the quantity of bitcoin sold to customers, partially offset by a decrease in the average market price of bitcoin compared to the prior-year period,” the firm stated.
Block disclosed that it had not recognized a bitcoin impairment loss during that time frame. As of the end of June 2023, its BTC investment was worth $245 million. Due to the slight price decrease of the primary digital asset in the following weeks, though, the company’s 8,027 BTC stash is currently worth approximately $234 million.
The organization is among the top 10 largest corporate holders of bitcoin (according to CoinGecko’s data). The leader is MicroStrategy which recently purchased another 420 BTC, bringing its total to 152,800 BTC.
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Block’s overall financial results (excluding bitcoin revenue) were also positive. However, the price of its shares failed to head north. SQ stood at over $73 when the market closed on August 3, whereas it is now approximately 6% down in after-hours trading.
The Reverse Situation Last Year
The technology conglomerate disclosed $1.83 billion of bitcoin revenue generated from its Cash App payment service in Q4 2022, 8.5% less than the Q4, 2021 figures. It explained that the disappointing number resulted from the market crash last year that dwindled investors’ interest in the primary cryptocurrency.
“The year-over-year decline in revenue was driven by a decrease in the total dollar amount of bitcoin sold to customers, which we recognize as bitcoin revenue, and bitcoin gross profit was 2% of bitcoin revenue in the quarter,” Block stated at the time.
Contrary to the shrunk figure, Block’s shares spiked by around 7% following the company’s much better overall financial results.
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