CashApp Bitcoin Sales Up 25% Since Last Quarter
Quarterly earnings reports have flowed across the financial sector, highlighting the adoption of crypto in the industry. While some companies are still feeling the effects of the crypto winter, others are seeing success, even those with different priorities that have adopted crypto to some degree.
One such company is Block, formerly known as Square, for its business platform. Despite doubts fueled in part by reports from short-sellers at Hindenburg Research, Block reported modest increases in earnings and earnings per share. The company is reportedly considering legal action against the research firm for its inaccurate and misleading reports.
While Block’s shares fell shortly after the report was published, the company’s earnings per share were actually higher than analysts had predicted. At the time of writing, the company’s stock is valued at just under $60.
One of the reasons for Block’s success this quarter is Bitcoin’s role in their financial returns. Bitcoin sales on CashApp, one of Block’s most popular products, have seen a 25% increase since last year, in contrast to the previous quarterly report where sales decreased by 7% year over year.
Even though the revenue from selling BTC only contributed $50 million to the Block’s total gross profit of $1.71 billion, the results prove that the adoption rate of Bitcoin is still increasing for the general public. This is an important trend as institutional investors continue to accumulate BTC using more traditional financial products.
Jack Dorsey, the co-founder, and former CEO of Twitter, who is currently the CEO of Block, has long believed in Bitcoin. His confidence appears to be paying off, with cryptocurrencies playing a key role in Block’s financial success this quarter. And with increasing adoption rates, it is likely that Bitcoin can continue to be a valuable asset for companies.
For the industry, easy access to crypto is important to keep it open to the public, not only for individual investors but also for companies like Block. As the financial sector continues to navigate the evolving crypto landscape, success stories like Block remind us of the potential benefits of adopting this asset class.