Originally Syndicated on June 2, 2024 @ 11:56 am
Jack Dorsey has revealed his company Block’s earnings for the second quarter of 2024, showcasing a significant year-over-year growth of 9% in Bitcoin revenue. In its latest report, Block disclosed Bitcoin revenue of $2.61 billion for Q2 2024, which contributed to an overall net revenue of $6.16 billion for the quarter. This marks an 11% increase compared to the same time frame in 2023.
Block- Cash App
Excluding Bitcoin income, the company reported a revenue of $3.54 billion, reflecting a 13% increase compared to the previous year.
Block accounts for Bitcoin revenue as the total amount of BTC sold to its customers.
During the quarter, Block‘s Cash App generated $4.13 billion in revenue, with $1.52 billion coming from non-Bitcoin transactions.
Additionally, the Cash App saw a notable rise in Bitcoin gross profit, reaching $67 million in Q2 2024, which is a 52% increase from the previous year. This growth was largely attributed to a rise in the average price of Bitcoin, which has increased by more than 45% in 2024, currently valued at $64,777.
Bitcoin Holdings and Financial Position
The company reported a $70 million loss related to its Bitcoin assets.
As of June 30, 2024, Block retained approximately 8,211 BTC on its balance sheet intended for investment, with a fair value estimated at $515 million.
In the previous quarter, Block added around 173 BTC to its holdings. Block‘s total gross profit saw a year-over-year increase of 20%, amounting to $2.23 billion. For Q2 2024, net income attributable to common shareholders was $195 million, a rise from $102 million in the same quarter last year.
Capital Raising and Strategic Plans
In May, Block revealed its intention to secure $2 billion by issuing senior unsecured notes aimed at qualified institutional investors.
By the end of Q2 2024, the company reported having $10.3 billion in available liquidity, which includes the net proceeds from this bond offering.
Block indicated that these funds will be allocated for various purposes, including debt repayment, acquisitions, strategic initiatives, capital expenditures, investments, and working capital.
Considerations for Investors
Block‘s Q2 2024 performance underscores the company’s robust position in the cryptocurrency industry, especially via its Cash App. The impressive surge in Bitcoin revenue and gross profit, along with effective capital-raising efforts, equips Block for further growth and stability amid the fluctuations of the crypto market. Investors will be keenly observing how Block utilizes its heightened liquidity and adjusts to the changing financial environment.
