- Block Inc. saw a 9% increase in Bitcoin-related revenue, reaching over $2.6 billion for Q2 2024
- Total net income for Block was $6.2 billion for the same period, marking an 11% increase year-over-year
- Block’s Bitcoin reserves experienced a $70 million loss, but the company acquired 173 BTC last quarter
Block Inc., Jack Dorsey’s payment company, just announced its earnings for the second quarter of 2024, and the results are pretty impressive. Bitcoin revenue grew by 9%, reaching $2.61 billion.
The company made $6.16 billion in net earnings for the quarter, a 11% increase compared to the same period last year. Cash App, one of Block’s main platforms, saw a big jump in Bitcoin gross profits, thanks to the price of Bitcoin going up.
Block Inc. Reports Strong Q2 2024 Earnings
Block Inc., the payment company founded by Jack Dorsey, just released its earnings for Q2 2024, and they’re looking good! They’ve seen a 9% year-over-year growth in Bitcoin revenue.
In a letter to shareholders, they shared that Bitcoin revenue at Block surpassed $2.61 billion during the period. The company’s total net revenue for the quarter was $6.16 billion, marking an 11% increase compared to Q2 2023.
So, If we exclude Bitcoin revenue, the company’s earnings were $3.54 billion, which is a 13% year-on-year increase. Block includes Bitcoin revenue as the total amount of BTC sold to customers.
Cash App, a big player in the Block space, brought in $4.13 billion in revenue for the quarter. Excluding Bitcoin transaction gains, revenue was $1.52 billion. Cash App’s gross Bitcoin profit for Q2 2024 was $67 million, a 52% increase from the same time last year.
Record Bitcoin Profits for Block, but Reserve Losses Persist
Block said that the jump in Bitcoin gross profit was mostly due to a rise in the average price of BTC. The cryptocurrency has climbed more than 45% in 2024 so far, trading at $64,777 as of this report.
The company also updated its Bitcoin holdings, showing a $70 million loss on its BTC investments. As of June 30, 2024, Block had about 8,211 BTC on its balance sheet for investment, valued at $515 million. They acquired roughly 173 BTC during the last quarter.
Block saw a 20% jump in total gross profit year-over-year, reaching $2.23 billion. Net income attributable to common shareholders was $195 million for Q2 2024, up from $102 million the previous year.
The company also said in their letter that they ended the second quarter of 2024 with $10.3 billion in available cash, including the net proceeds from this debt offering.
The plan is to use the funds from the debt sale for debt repayment, acquisitions, strategic transactions, capital expenditures, investments, and working capital.
Conclusions
To sum up, Block is doing well. They’ve seen a lot of growth in Bitcoin revenue and are doing well financially overall. Even though there’s been a drop in Bitcoin reserves, the company is still moving forward with some big plans. They’re planning to offer $2 billion in debt to support future projects and strategies.
The solid liquidity and growth in Bitcoin gross profit are good signs that Block is headed in the right direction.
