Crypto

Revenue of Block Q2 Bitcoin Dropped 6% YOY Due to BTC Dip

The Q2 gross profit and revenue of Bitcoin surged by 29% and 34%, respectively

The revenue of “Block Inc.” the American digital payments company dipped by 6% year-over-year (YOY) in the second quarter to hit the $4.4 billion. Despite the fact that the number are still more than Wall Street’s expectations of $4.35 billion, but Block suffered losses of $208 million during the quarter, according to the reports from the Associated Press.

Block shares dropped by 5.35% to $84.90, right after the results of the second quarter in after-hours trading on Thursday. However, Block closed last year with great increase of 62% in revenue YOY to $4.42 billion, as the purchases of Bitcoin (BTC) contributing $.96 billion.

However, according to a report from Jack Dorsey-led company (Block) latest quarterly report, what led the company to suffer these losses and declines in the revenue of the second quarter was the fall in bitcoin prices along with in consumer demand for the asset.

“Cash App generated $1.79 billion of bitcoin revenue and $41 million of bitcoin gross profit during the second quarter of 2022, down 34% and 24% year over year, respectively,” Block said in its Shareholder Letter.

In fact, the gross profit abd revenue of the largest cryptocurrency in the world Bitcoin (BTC) increased 168% and 143% on a 3-year CAGR basis. Block believes that revenue and gross profit are about to see fluctuation in upcoming quarters depending on movements in consumer demand or BTC prices.

“The year over year decrease in bitcoin revenue and gross profit was driven primarily by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of bitcoin during the quarter,” it said.

Having Bitcoin apart, The revenue of Block increased in the second quarter by 34% to $2.62 billion. While the company’s gross profit surged 29% year-over-year to $1.47 billion, with both Cash App and Square registering a 29% rise in gross profits at $705 million and $755 million, respectively.

“Bitcoin revenue and gross profit were relatively consistent compared to the first quarter of 2022,” it said.

By the time of writing this article, Bitcoin (BTC) is trading at $22,890.47 in green.

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