Block announces a 34% increase in Bitcoin revenue for the second quarter, but its stock price declines

Block’s Cash App saw a decline in Bitcoin sales in the second quarter of 2023, while overall earnings were up 7 percent over the same period in 2022.

Although Block Inc.’s second-quarter results exceeded profits forecasts, including a 34% year-over-year rise in Bitcoin sales, the company’s stock price fell after hours.

Block said at its Q2 earnings conference that its Cash App platform had processed $2.4 billion in Bitcoin transactions, with a corresponding $44 million in gross profit, an increase of 7% year over year.

Quarterly revenue for Block rose from $4.4 billion to $5.53 billion, a 25.6% rise year over year; this means that Bitcoin sales accounted for over half of the total income.

Bitcoin sales went up, the business said, since clients kept buying the cryptocurrency despite its value falling over the last year.

The market, however, did not react positively, and Block shares actually ended the day down 5.6%, according to statistics from Google Finance.

Block also brought up its own Bitcoin investments, saying that it will be spending $50 million on Bitcoin in the fourth quarter of 2020 and another $170 million in the first quarter of 2021.

According to the results report, as of June 30, 2023, the company’s Bitcoin holdings had a fair worth of $245 million based on observable market prices, which was $142 million more than the carrying amount of the investment after cumulative impairment charges.

Block Inc.’s overall gross profit was $1.87 billion, up 27% year over year, while Cash App’s gross profit was $968 million, up 37% year over year, both showing ongoing success.

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