Jack Dorsey’s Block sees Bitcoin revenue grow 9% to $2.6B

Jack Dorsey’s payment giant, Block Inc., has reported a substantial rise in its Bitcoin revenue for the second quarter of 2024, showcasing a 9% year-over-year increase. According to the latest shareholder letter, Block’s Bitcoin revenue hit $2.61 billion during this period, contributing to a total net revenue of $6.16 billion. This figure marks an 11% increase compared to the same quarter in 2023. When excluding Bitcoin revenue, Block’s earnings were $3.54 billion, showing a 13% year-over-year growth.

Block calculates Bitcoin revenue by considering the total amount of BTC sold to its customers. Notably, Block’s Cash App played a significant role, generating $4.13 billion in revenue in the second quarter. Excluding Bitcoin gains, the Cash App’s revenue stood at $1.52 billion. The app also reported $67 million in Bitcoin gross profit, a remarkable 52% increase from the same period last year. This surge in Bitcoin gross profit was primarily driven by the rising average price of BTC. As of now, Bitcoin has appreciated over 45% in 2024, trading at $64,777.

Block also updated its Bitcoin reserves, revealing a $70 million loss from its BTC holdings. As of June 30, 2024, Block held approximately 8,211 BTC, valued at $515 million. The company acquired around 173 BTC in the last quarter. Block’s total gross profit rose by 20% year-over-year, amounting to $2.23 billion. Net income attributable to common shareholders was $195 million in the second quarter, a notable increase from $102 million the previous year.

In May, Block announced plans to raise $2 billion in senior unsecured notes for qualified institutional investors. “Including the net proceeds from this debt offering, we ended the second quarter of 2024 with $10.3 billion in available liquidity,” the company mentioned in its letter. The proceeds from this debt sale are earmarked for debt repayment, acquisitions, strategic transactions, capital expenditures, investments, and working capital.

Jack Dorsey’s Block continues to show robust financial health and strategic growth, positioning itself as a significant player in the Bitcoin and fintech landscape.