Block, formerly known as Square and led by former Twitter CEO Jack Dorsey, has revealed impressive growth in its Bitcoin revenue for the second quarter of 2023. The payment technology firm reported that its Bitcoin revenue for this period reached approximately $2.39 billion, marking a substantial 34% increase compared to the figure reported in Q2 2022, which was nearly $1.8 billion.
The surge in Bitcoin revenue can be attributed to the company’s mobile application, Cash App, which enables monetary transfers and has become a significant player on the crypto scene. Cash App’s BTC gross profit also showed promising growth, reaching $44 million, a 7% increase year-over-year.
Block attributed the year-over-year increase in Bitcoin revenue and gross profit to the higher 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 surge in Bitcoin revenue, Block did not incur any Bitcoin impairment losses during the period. As of the end of June 2023, the company’s BTC investment was valued at $245 million. However, due to a slight price decrease in the following weeks, Block’s stash of 8,027 BTC is currently worth approximately $234 million.
With this substantial BTC investment, Block has cemented its position as one of the top 10 largest corporate holders of Bitcoin, according to CoinGecko’s data. MicroStrategy holds the top job, having recently purchased an additional 420 BTC, bringing its total Bitcoin holdings to 152,800 BTC.
In addition to the positive bitcoin revenue, Block’s overall financial results (excluding bitcoin revenue) were also encouraging. However, the company’s shares did not experience an immediate uptick, as SQ’s stock price closed at over $73 on August 3, but subsequently dipped by approximately 6% in after-hours trading.
Block had previously reported a decline in bitcoin revenue, with $1.83 billion generated from Cash App in Q4 2022, an 8.5% decrease compared to the figures from Q4 2021. The company explained that this disappointing number was a result of the market crash that occurred last year, which dampened investor interest in the primary cryptocurrency.
Despite the decrease in revenue at the time, Block’s overall financial results were favorable, leading to a 7% spike in its shares. The company’s strong performance in the crypto and financial sectors continues to attract investors’ attention and interest.
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