Bitcoin revenues of US-based digital payments company Block fell by 6% in the second quarter of the year.
Bitcoin revenues of Block, the company of former Twitter CEO Jack Dorsey, fell 6% year-on-year in the second quarter to $4.4 billion. It suffered a $208 million loss during the quarter, versus Wall Street’s expected revenue of $4.35 billion.
Following the results, Block’s shares fell 5.35% in after-hours trading on Thursday to 84.90.
The company’s Bitcoin revenues in the same period of 2021, on the other hand, increased by 62% to $ 4.42 billion.
Jack Dorsey’s company cited the decline in consumer demand for Bitcoin, with the decline in the price of Bitcoin as the main factor in this decline.
“Cash App delivered $1.79 billion in Bitcoin revenue and $41 million in Bitcoin profits in the second quarter of 2022, down 34% and 24% year-on-year, respectively,” Block said in a letter to shareholders.
Bitcoin revenue and gross profit increased by 143% and 168% on a 3-year CAGR basis, according to the company’s statement. Block expects Bitcoin revenue and gross profit to fluctuate in the coming quarters, driven by price movements and demand for the asset.
