Bitcoin-loving payments firm Block Inc. today reported gross profit of $1.87 billion in its second quarter 2023 results—a 27% year-over-year increase. And $2.4 billion of its total $5.5 billion Q2 net revenue came from Bitcoin, the company said.
The company—formerly known as Square—saw a 34% increase in Bitcoin revenue compared to the same period in 2022. Bitcoin revenue refers to the total sale amount of cryptocurrency sold to customers.
“We delivered strong growth and profitability at scale during the second quarter of 2023,” the company said in a letter to shareholders.
Block’s Cash App business Bitcoin revenue stood at $1.16 billion, a 39% increase compared to the same period in 2022. If not for a dip in prices, the company said, the revenue could have contributed even more to its bottom line.
“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the quantity of Bitcoin sold to customers, partially offset by a decrease in the average market price of Bitcoin compared to the prior-year period,” the company said in a letter to shareholders.
The company also recorded no impairment losses on its Bitcoin holdings, which now total $245 million, in the three- and six-month periods ending June 30, 2023.
An impairment charge refers to a loss of value in assets—in this case, the digital assets held by the company.
Block is a payments company founded by Twitter co-founder Jack Dorsey. Its popular mobile app, Cash App, is a popular tool for buying and selling Bitcoin.
The app last year installed the Bitcoin “second-layer solution” the Lightning Network—allowing users to make small and quick payments with crypto.
The move shows just how committed the company is to pushing Bitcoin adoption. In June, Dorsey-backed Bitkey launched the beta for its Bitcoin wallet, which will allow users withdraw BTC from their Coinbase and Cash App wallets using “copy and paste.”
