Former Twitter CEO Jack Dorsey’s digital payments company, Block Inc., posted a 29% year-over-year profit increase to $1.47 billion.BTC) prices.
The financial services company primarily generates Bitcoin revenue by providing BTC trading services through its digital payments app Cash App.
Block Inc. noted that the business generated $1.79 billion in Bitcoin revenue in the quarter, down 34% year-over-year, with a Bitcoin gross profit of just $41 million, suggesting it could be an expensive business to provide Bitcoin services to their customers.
Block Inc. attributed the drop in Bitcoin revenue to “increased uncertainty” in crypto assets, stating:
“Bitcoin’s year-over-year decline in revenue and gross profit was primarily due to lower consumer demand and the price of bitcoin, partly due to higher uncertainty surrounding crypto assets, which more than offset the benefits of price volatility.” Bitcoin per Quarter”.
However, Block Inc. emphasized that the decline in BTC’s profits was not reflective of the performance of the wider business. She also noted that BTC profits are likely to fluctuate over time due to “changes in customer demand or the market price of Bitcoin.”
The company also noted that it recognized 36 million
Under US accounting procedures, cryptocurrencies are classified as intangible assets on balance sheets and companies must report losses when the asset’s price falls below its cost baseeven if the profit or loss was realized on the sale during the specified quarter.
The company noted that in 2022 June 30 the true value of her Bitcoin investment is $160 million. USD based on market prices.
Investors seem unimpressed with Block Inc.’s Q2 performance, as the company’s stock SQ fell 7.42% after hours to trade at $83 at the time of writing.
Bloomberg said this came as the company reported lower-than-expected trading volume of $52.5 billion opposed to 53.47 billion
Bitcoin from the block
Dorsey, a hot Bitcoin maxi, has been relatively quiet about his plans for digital gold since announcing that Block Inc. surpasses the Web3 model. to create a Web5 project focused on the Bitcoin blockchain in June.
Web5 is essentially a Decentralized Web Platform or DWP that allows developers to build decentralized web applications using DIDs and decentralized nodes that will also have a monetary network built around BTC instead of a smart contract-based token.
– Jack (@jack) in 2022 June 16