Block Reports Earnings and Beats Analyst Expectations
Aug 5, 2022 By MarketDepth
Block (SQ:NYQ) reported second-quarter earnings Thursday and showed Bitcoin revenue slowed on its Cash App by 34%. Also taking a debit on its bitcoin investments of $36 million.
Block formerly Square is down .5% intraday even after beating analyst expectations. Revenue was up 34% YoY and topped $2.62 billion, excluding the Bitcoin sector’s loss.
“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.”The company stated
The company’s $36 million charge is due to how digital assets are managed with the GAAP rules. Since the whole crypto market is near its lows for the year the charge is justified.
“In future quarters, bitcoin revenue and gross profit may fluctuate as a result of changes in customer demand or the market price of bitcoin.”The company stated