Jack Dorsey-owned company Block Inc's quarterly earnings report posted a 29% gain at $1.47 billion year-over-year but its Bitcoin (BTC)-based crypto business slumped.
The company owned by the former CEO of Twitter saw its BTC business plummet due to affected demand and the fall in the value of the mother of all cryptocurrencies.
Breaking down the crypto business, Block posted a 34% decline in revenue at $1.79 billion while gross profit was at $41 million, indicating that BTC-based services are a high-cost transaction.
According to Block Inc's official statement, the drop in BTC revenue can be attributed to the 'uncertainty' in the crypto asset market.
However, the decline in the crypto business does not reflect Block's overall performance as the company managed to post results that beat Wall Street projections.
In a report released by Block, total revenue was down 6% at $4.4 billion in 2Q which was slightly more than $4.3 billion and, excluding BTC revenue, overall net revenue was up 34% to $2.62 billion year over year.
Gross profit rose 29% to $1.47 billion, including $755 million from Square services and $705 million from Cash App.
Turning to Block's crypto business, the company is understood to have recognized a loss of $36 million on its BTC holdings but it stated that the loss was only on paper.
