Block Inc., a payments firm, announced a gross profit of $1.87 billion in the second quarter of 2023, marking a 27% increase compared to the same period last year. Of its total Q2 net revenue of $5.5 billion, $2.4 billion came from Bitcoin, according to the company.
The firm, which was previously named Square, experienced a 34% rise in Bitcoin revenue in comparison to the same timeframe in 2022. This revenue pertains to the overall amount of Bitcoin sold to its customers.
A letter to shareholders stated that "we delivered strong growth and profitability at scale during the second quarter of 2023."
Block's Cash App segment reported Bitcoin revenue of $1.16 billion, showing a 39% growth in comparison to the same time frame in 2022. The company stated that the revenue could have been even more significant for its bottom line had it not been for a decrease in prices.
The shareholder letter also revealed that "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."
Block Inc. reported no impairment losses on its Bitcoin holdings during the three- and six-month periods ending June 30th, 2023. As of that date, the total value of the company's Bitcoin assets stands at $245 million.
An impairment charge is a reduction in the value of assets, and in this context, it refers to the Bitcoin held by Block.
Block was founded by Jack Dorsey, who also co-founded Twitter. Its widely-used mobile application, Cash App, is a favored platform for the purchase and sale of Bitcoin.
Last year, the app integrated the Bitcoin Lightning Network, a second-layer solution, enabling users to conduct cost efficient and swift payments.
The company's integration of the Lightning Network demonstrates its strong commitment to promoting Bitcoin adoption.