- Jack Dorsey heads Block Inc, which is a financial service provider company.
- Block Inc reportedly shared a profit of around $1.5 billion in Q2.
- The company further added that its BTC revenue is only $41 million.
Block Inc. Q2 Profit Analysis
Jack Dorsey is a CEO of a digital payment company, Block Inc. The company noted its year-on-year (YOY) profit was up 29% to $1.47 billion in Q2. While its BTC trading services noted it’s YoY down 34% with only $41 million. The BTC business fall is due to the lack of customer demand and the BTC price fall.
The major financial services company uses a digital payment application, Cash App. It produces BTC revenue with the help of BTC trading services. Cash App is developed by Block Inc. firm. The BTC revenue produced by Block Inc. was around $1.79 billion in the quarter.
Block Inc. is a high-cost firm that serves the customers with its BTC trading facility. The company described the BTC fall as “broader uncertainty” in the crypto market. It further added, “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.”
Even so, Block Inc. highlighted that the BTC price fall does not reflect any firm’s broader performance. Also, the BTC profit will probably fluctuate over time. Hence it will affect “changes in the customer demand or the market price of BTC.”
The company further detailed its loss in BTC holding of about $36 million. That is assumed to be a loss on paper. As per the US accounting processes, crypto is an intangible asset on balance sheets. And firms must report the loss if the price is down from its cost basis. Even after profit and loss is considered during the sale in that quarter.
The company itself shared about the BTC investment on June 30, 22. That is around $160 million BTC as per the current market price. On the other hand, the investors are unimpressed by Block Inc as the company’s Q2 performance isn’t up to the mark.
Source: https://www.thecoinrepublic.com/2022/08/05/jack-dorseys-block-inc-spots-its-q2-profit-of-1-5-billion/