Bitcoin pulls down Block, Inc. net revenues by 6%

Block Inc. reported a 6% decrease in its second-quarter 2022 net revenues compared with last year, driven by a decline in bitcoin revenues. 

The company’s total net revenue in the second quarter was $4.4 billion. Without the impact of bitcoin, the company’s total net revenues were up 34% to $2.62 billion, it said in a letter to shareholders released before its earnings call.

The parent company of the Cash App and Square reported a net loss of $208 million in the quarter, which takes into account a $36 million impairment loss related to bitcoin, a $57 million amortization charge and $17 million related to “deal and integration-related expenses.” The company’s quarterly net loss is $98 million when excluding these factors.

Block, Inc’s second-quarter gross profit was up 29% year-over-year to $1.47 billion, which includes a $755 million gross profit for Square and $705 million related to the Cash App. The company reported $1.79 billion in bitcoin revenue in the second quarter from Cash App, down 34% year-over-year. The app’s bitcoin gross profit was $41 million, down 24% from the same three-month period a year earlier. 

The company’s executives will further discuss the company’s second-quarter results during a webcast today at 5:00 p.m. EST. 

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