In its financial statements for the second quarter of 2022, Jack Dorsey’s Block Company recorded a loss of $57 million. In which the company suffered a loss of $ 36 million from Bitcoin. However, Square and Cash App are the notable “trumps.”
In its Q2 2022 financial report, Block revealed total net revenue of $4.40 billion, down 6% year-on-year in 2021. Excluding Bitcoin (BTC) revenue, the total net revenue is $2.62 billion, up 34% compared to the second quarter of 2021. As can be seen, the correction of the Bitcoin market has affected the economic picture of Block.
In addition, Block recorded a loss of $57 million, of which the loss from Bitcoin was $36 million. As for the Bitcoin payment app, Cash App had total revenue of $2.62 billion, down 21% from the annual revenue base.
Bitcoin revenue was $1.79 billion, down 34% year-on-year. Bitcoin’s gross profit is $41 million, or 2% of Bitcoin revenue.
But on a three-year CAGR basis, Bitcoin’s revenue and gross profit increased by 143% and 168%, respectively. The report attributed the drop in revenue to reduced customer demand during the bear market, citing that:
“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.”
Although Jack Dorsey‘s company was affected by the Bitcoin market correction, the metrics proved Square and Cash App to be Jack Dorsey’s money-harvesting.
According to a financial overview from Square, the platform “generated $1.73 billion in revenue and $755 million in gross profit.” Square’s revenue grew 32% yearly, and profits increased 29%. BNPL Postpaid Payment Platform contributed $104 million in revenue and $75 million in gross profit for Square.
As for the Cash App, the app “generated $2.62 billion in revenue and $705 million in gross profit.” On a year-over-year basis, Cash App revenue fell 21%, and profits increased 29%. But on a three-year CAGR, Cash App’s revenue and profit increased by 116% and 88%, respectively. Additionally, Cash App generated $720 million in subscription and service-based revenue.
Overall, financial statements from Square and Cash App in the long term are still positive. This growth can offset the 66% increase in operating expenses compared to last year’s period.
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