Digital payments company, Block has recorded a year-over-year (YoY) profit of $1.47 billion in Q2 and revenue of $4.4 billion, despite a decrease in Bitcoin (BTC) revenue.
The firm’s shareholder letter states that Cash App generated $1.79 billion in BTC transactions, which is 34% less than the previous year.
The gross profit from BTC was $41 million dollars, down 24% year over year.
The company attributed the decline in BTC revenue to “a decline in consumer demand and the price of the digital currency, linked in part to wider uncertainty surrounding crypto assets, which has more than mitigated the benefit of Bitcoin’s price volatility over the quarter.”
Jack Dorsey’s Block also reported an impairment of $36 million on its Bitcoin holdings. The company notes that the fair value of its investment in bitcoin was $160 million, versus the carrying value of the investment of $113 million, as of June 30, 2022.
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The shares of the company fell to $83.33, a decrease of 6.5% in after-hours trading on Thursday.
