Block Announces a 34% Surge in Bitcoin Revenue
- Block stated in the Q2, 2023 earnings report that it has seen a 34% year-on-year increase in its Bitcoin revenue.
- The company reported a staggering $2.4 billion in Bitcoin sales on its Cash App platform.
- The revenue generated by Block in Q2, 2023 increased by 25.6% from $4.4 billion to $5.53 billion year over year.
- The firm said that the fair value of its Bitcoin investment was $245 million, $142 million greater than the carrying value.
Jack Dorsey’s blockchain-focused company, Block, has announced a 34% surge in its revenue in the second quarter of 2023, post the 2022 crypto market slump. However, the price of the stock of the company continues to decline and is significantly lower than the highs of 2021, the peak of the previous crypto bull market.
As per the shareholder letter, Block confirmed that the company posted a 34% year-on-year increase in its Bitcoin revenue. Moreover, the company reported a staggering $2.4 billion in Bitcoin sales on its Cash App platform. The gross profit from Bitcoin came to around $44 million, which is an increase of 7% from the same time last year.
Additionally, the revenue generated by Block in the second quarter of 2023 increased by 25.6% from $4.4 billion to $5.53 billion year over year. This confirms that almost half of the revenue came from the sale of Bitcoin alone.
Block said that the surge in revenue and Bitcoin sales can be attributed to those who have purchased crypto assets despite the huge slump in the industry in 2022 and the collapse of multiple crypto-focused companies like FTX.
“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,” said Block.
More importantly, Block also highlighted its own Bitcoin purchases worth $50 million in Q4 2020 and an additional $170 million in Q1 2021. The shareholder letter stated that “as of June 30, 2023, the fair value of our investment in Bitcoin was $245 million based on observable market prices, which was $142 million greater than the carrying value of the investment after cumulative impairment charges.”
As reported earlier by BitcoinWisdom, Block made an astonishing $2.16 billion in Bitcoin revenue from Cash App in the first quarter of 2023. The Bitcoin revenue of the company has increased 18% from $1.83 billion in Q4 and 25% from Q1 2022.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
