Block reports a 34% increase in its second-quarter Bitcoin revenue

Block reports market-beating results for its fiscal second quarter.
It attributed nearly half of its quarterly revenue to Bitcoin sales.
Shares of the fintech still ended nearly 15% down on Friday.

Block Inc ended nearly 15% down on Friday even though it reported market-beating results for its second financial quarter.

Bitcoin made up half of Block’s Q2 revenue

The financial technology company saw continued interest in digital assets in Q2.

Its Bitcoin revenue went up 34% on a year-over-year basis to $2.40 billion and made up nearly half of its total quarterly revenue. Block also revealed in a letter to shareholders today:

As of June 30th, fair value of our investment in BTC was $245 million based on observable market prices, which was $142 million greater than carrying value after cumulative impairment charges.

The multinational attributed $44 million worth of gross profit in its recently concluded quarter to Bitcoin sales – up 7.0% versus a year ago. Block shares are now down nearly 30% versus their year-to-date high.

Notable figures in Block’s Q2 earnings print

Lost $123 million versus the year-ago $208 million
Per-share loss narrowed from 36 cents to 20 cents
Adjusted EPS printed at 39 cents as per the press release
Sales went up 26% year-on-year to $5.53 billion
Consensus was 36 cents a share on $5.1 billion in revenue
Square and Cash App gross profits climbed 18% and 37%
Gross payment volume increased 12% to $59.01 billion

Block now forecasts $1.5 billion in full-year adjusted EBITDA. Its previous guidance was for $1.36 billion. The conglomerate also said in its letter to shareholders:

In early 2023, we incorporated Gen AI as a strategic priority because we believe the tech can create new features and efficiencies for our customers.

Wall Street currently has a consensus “overweight” rating on Block stock.

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