Green in general, red in details – Blockex-Square, de Jack Dorsey could have make a without fail in its second quarter financial results, if the bears hadn’t interfered, by bringing Bitcoin (BTC) around the 20 000 dollars.
Block in overall financial health
Jack Dorsey and his team can rejoice and congratulate themselves on the financial results from Block in the first quarter. The overall figures have exceeded projectionsduring this red period.
The total income of the company has reached the $4.4 billion, beating analysts’ forecast of $4.3 billion, reported by Factset. Adjusted actual earnings per share also beat expectations: 18 cents against an average estimate of 16 cents per share by analysts.
These good figures are however tarnished by the poor performance recorded by activities related to the Bitcoin during this crypto winter.
Lack of appetite for Bitcoin during 3 months of red candlesticks
Figures from Cash App, which is the peer-to-peer payment service offered by the company and which allows its users to buy and sell Bitcoin, followed the bearish movement steps.
The application generated $1.79 billion transactions in bitcoins during the period and 41 millions the dollars of gross profit, suffering drops respective of 34 and 24% year-on-year.
Paying the price of HODLing, Block also had to note on paper a $36 million impairment on his bitcoin holdings. This accounting entry, carried out in accordance with the rules of the trade, is nevertheless not necessarily accompanied by a real flow – real sale of bitcoins at a loss.
These numbers are strong evidence that the bears have succeeded in reducing the appetite of Cash App customers for cryptocurrencies. Stomachs knot in part due to “the broader uncertainty around crypto-assets”using the terms used by the company, to explain the drop in demand for Bitcoin and cryptocurrencies in the second quarter.
Block is doing like this pretty goodGiven the bearish context who managed to bring crypto giants to their knees. The first quarter figures and the second quarter of this year for Bitcoin-related business are admittedly well below last year, but the company continue still record profitsdespite crypto markets in the red.
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