The payment technology company Block, formerly known as Square, has reported a significant increase in its bitcoin revenue for the second quarter of 2023. The company, led by Jack Dorsey, the former CEO of Twitter, is a prominent player in the crypto industry and currently holds over 8,000 BTC.
Block’s mobile application, Cash App, which enables monetary transfers, generated a bitcoin revenue of $2.39 billion in Q2 2023. This represents a 34% increase compared to the approximately $1.8 billion reported in the same quarter last year. The BTC gross profit for Cash App amounted to $44 million, showing a 7% year-over-year growth.
The rise in bitcoin revenue and gross profit can be attributed to an increase in the quantity of bitcoin sold to customers. However, this growth was partially offset by a decrease in the average market price of bitcoin compared to the previous year.
Despite the positive financial results, Block’s shares did not experience a significant increase. While the market closed on August 3 with shares valued at over $73, the after-hours trading shows a decline of approximately 6%.
It is worth noting that in Q4 2022, Block reported a decline in bitcoin revenue, which amounted to $1.83 billion generated from its Cash App payment service. This figure was 8.5% lower than the revenue reported in Q4 2021. The company attributed this decrease to the market crash that occurred last year, which resulted in a decrease in investors’ interest in bitcoin.
Block is currently one of the top 10 largest corporate holders of bitcoin, with its BTC investment valued at $245 million as of the end of June 2023. However, due to a slight price decrease in the following weeks, the company’s BTC stash is currently worth approximately $234 million.
In comparison, MicroStrategy, the leader in corporate bitcoin holdings, recently purchased an additional 420 BTC, bringing its total to 152,800 BTC.
Overall, Block’s performance in Q2 2023 demonstrates a significant increase in bitcoin revenue. However, the company’s shares did not reflect this growth in after-hours trading. As the crypto market continues to evolve, it will be interesting to see how Block’s bitcoin revenue and overall financial results develop in the coming quarters.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice.
