Co-founded by Jack Dorsey, formerCEO and co-founder of twitterthe digital payments company Block reported the loss of $36 milliondue to the devaluation of the bitcoin (BTC) in the second quarter of this year (2Q22).
The company attributed the loss to “the broader uncertainty about the crypto assets”, according to Decrypt.
The company’s total net revenue in 2Q22 was US$ 4.4 billion. without the impact of bitcointhe company’s total net revenues rose 34% to $2.62 billion, said Block in a letter to shareholders before the earnings call.
“The annual decline in revenue from bitcoin and in the gross profit of bitcoin was motivated primarily by a drop in consumer demand and the price of bitcointhe latter related in part to the broader uncertainty around crypto,” the company said in its earnings report for the period.
The parent company of Cash App and Square reported a net loss of $208 million in the last quarter, a figure that considers: the loss of $36 million due to bitcoina charge of $57 million on amortization and $17 million related to “settlement and integration expenses”.
The company’s quarterly loss is $98 million when these factors are excluded.
The gross profit of Block the second quarter saw a 29% year-to-date increase to $1.47 billion – which includes net income of $755 million for Square and $705 million related to Cash App.
Block reported that Cash App had $1.79 billion in revenue from bitcoin in 2Q22, a decrease of 34% in the year to date. The gross profit of the money transfer application from the bitcoin was $41 million, down 24% from the second quarter of 2021.
Block and plans for bitcoin
Jack Dorsey, a strong supporter of bitcoinmade cryptocurrency one of the priorities of Block. The company shelled out $220 million to buy 8,027 BTC to keep on its balance sheet.
The company is also involved in technological aspects of the world’s largest cryptocurrency – including plans to develop a hardware wallet for bitcoin and the creation of a team to build BTC mining rigs.
Bitcoin lost about 51% its value since the beginning of 2022. As of press time, the cryptocurrency is up a modest 0.36% in the last 24 hours to $23,057, according to data from CoinMarketCap.
*With Decrypt information
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Source: Moneytimes
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