In the second quarter of 2022, Block (formerly Square) revenue from bitcoin sales through the Cash App amounted to $1.79 billion. The operations generated gross profit of $41 million for the payments company.
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Compared with the same period in 2021, the metrics fell by 34.2% and 25.4%, respectively.
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“The slowdown in momentum is primarily due to a decline in consumer demand and bitcoin prices, partly linked to broader uncertainty around digital assets,” — the company explained.
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Block’s total revenue for the second quarter was $4.4 billion. The firm posted a net loss of $208 million with gross profit of $1.47 billion.
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The company recorded impairment of acquired bitcoins of $36 million. The value of the investment in the first cryptocurrency as of June 30 was $160 million, up $47 million from the post-revaluation figure.
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In April, Cash App introduced a feature that automatically converts part of direct deposits into bitcoin.
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Earlier, ARK Invest’s Kathy Wood sold PayPal shares, citing greater confidence in Block’s app for buying cryptocurrencies.
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Before this, Block CEO Jack Dorsey repeatedly stated his aim to make digital gold the “native currency of the Internet”.
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