Block Inc. Reports 34% Increase in Bitcoin Revenue Amid Market Uncertainty

Block Inc. Reports 34% Increase in Bitcoin Revenue Amid Market Uncertainty

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  • Block Inc. reported a 34% increase in Bitcoin revenue in Q2 2023, with Bitcoin sales on its Cash App platform reaching $2.4 billion. Despite this, the company’s shares experienced a downturn in after-hours trading.
  • The company highlighted its Bitcoin investments, including a $50 million purchase in Q4 2020 and an additional $170 million in Q1 2021. As of June 30, 2023, the fair value of Block’s Bitcoin investment was $245 million.

Block Inc., a leading payment technology company, recently announced its Q2 earnings, revealing a 34% increase in Bitcoin revenue year-on-year. Despite this impressive growth, the company’s shares experienced a downturn in after-hours trading. This article delves into the details of Block’s Q2 earnings report, its Bitcoin investments, and the market’s reaction.

Block’s Bitcoin Revenue Soars Amid Market Volatility

In the second quarter of 2023, The company reported a substantial $2.4 billion in Bitcoin sales on its Cash App platform. This figure represents a 34% increase compared to the same period last year. The gross profit from Bitcoin sales was $44 million, marking a 7% increase from the same time last year. Despite a slight drop in Bitcoin profits on the Cash App from the first quarter of 2023, the year-on-year increase remains positive.

The company’s total revenue for the quarter also saw a significant increase, growing 25.6% from $4.4 billion to $5.53 billion year-on-year. This growth means that nearly half of Block’s revenue came from Bitcoin sales alone. The company attributed the year-on-year increase in Bitcoin revenue and gross profit to an increase in the quantity of Bitcoin sold to customers. This was partially offset by a decrease in the average market price of Bitcoin compared to the prior-year period.

Block’s Bitcoin Investments Yield Significant Returns

In addition to its Bitcoin sales, Block highlighted its own Bitcoin investments in the earnings call. The company noted a purchase of $50 million in Bitcoin in Q4 2020 and an additional $170 million in Q1 2021. These investments have proven to be fruitful for the company.

As of June 30, 2023, the fair value of Block’s investment in Bitcoin was $245 million, based on observable market prices. This value was $142 million greater than the carrying value of the investment after cumulative impairment charges. This indicates that Block’s strategic investments in Bitcoin have yielded significant returns, contributing to the company’s overall financial health.

Market Response to Block’s Q2 Earnings

Despite Block’s impressive Q2 earnings and the significant increase in Bitcoin revenue, the market response was less than favorable. The price of Block shares closed down 5.6% in after-hours trading, according to data from Google Finance. This suggests that despite the company’s strong performance, investors may have concerns about the broader market conditions or other aspects of Block’s business.

In spite of the market’s lukewarm response, The company reported a gross profit of $1.87 billion, a 27% increase year over year. The company’s Cash App also continued to show strength, with $968 million in gross profits, up 37% on the year. These figures underscore the company’s robust financial performance and the continued growth of its key business segments.


Block Inc.’s Q2 earnings report paints a picture of a company that has successfully leveraged the potential of Bitcoin to drive revenue growth. Despite the market’s tepid response, the company’s strong performance and strategic investments in Bitcoin suggest a promising future. As the company continues to navigate the volatile cryptocurrency market, it will be interesting to see how its strategy evolves and how the market responds.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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