The American-based Block Inc, reports $1.5B in Q2 profits.
The firm generated only $41 million, through the BTC trading service.
The digital payments company, Block Inc., formerly Square, has released its Q2 result. The financial service, owned by former Twitter CEO, Jack Dorsey saw its year-over-year (YoY) profits jump 29% to $1.47 billion in Q2. However, the firm’s Bitcoin revenue crashed due to weaker consumer demand and a continuous fall in Bitcoin (BTC) prices.
The company’s revenue from BTC in the quarter was $1.79 billion, a decrease of 34% year over year, but its gross profit was only $41 million, as per Block Inc.
Block Inc stated:
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.
Fall of Block’s BTC Revenue
The firm further added that it had an impairment loss of $36 million on its Bitcoin holdings. Even though, the decline in BTC profits does not represent the company’s overall success. As per Block Inc, the variations in consumer demand and the price of BTC on the crypto market will probably cause the Bitcoin revenues to alter over time.
Block Inc largely earned money through Bitcoin trading, with its digital payment service, Cash App. In 2018, mobile payment added cryptocurrencies to the platform, which allow their customers to conduct transactions. The firm now has a hardware Bitcoin wallet, a bitcoin mining operation, and an open-source company called TBD for Bitcoin businesses. Jack Dorsey, previously predicted that Bitcoin would soon become the money of the internet.