CashApps Bitcoin sales up 25% since last quarter
Quarterly reports are starting to pour in across the financial sector, and with them, updates on the state of crypto adoption in the industry.
While some companies are understandably still feeling the chill of crypto winter, even they are doing better than analysts expected. As for companies with other priorities that have nonetheless adopted crypto in one form or another, such as MicroStrategy, the asset class has so far proven to be part of their success.
Beat expectations and short-seller predictions
Block — better known by its former name Square, which is still used for its business platform — has reported a slight increase in revenue and earnings per share, despite doubts fueled in part by a report published by short sellers at Hindenburg Research. The firm is now considering legal action against the company.
“We intend to cooperate with the SEC and explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today. We will not be distracted by typical short seller tactics.”
Although the quarterly results came out just fine, Block’s stock took a dive shortly after the report was published. Fortunately for investors, the firm has reported that earnings per share are now 40 cents, versus analysts’ predictions of 35 cents. At the time this article was written, the company’s stock was worth just under $60, according to MarketWatch.
Bitcoin’s Role in the Blockchain’s Recovery
Jack Dorsey, co-founder and former CEO of Twitter who is currently Block’s CEO, has long been a Bitcoin believer. This quarter, the cryptocurrency played an important role in the company’s financial bottom line, with results that could indicate even greater success in the future.
According to Block, Bitcoin sales on CashApp – one of Block’s most hyped products – benefited from a 25% increase since last year. This is in stark contrast to the previous quarterly report, where Bitcoin sales fell by 7% year-on-year.
Although revenue from BTC sales only accounted for a total of $50 million of the firm’s total gross profit of $1.71 billion, the results still show that Bitcoin adoption rates are still increasing for the general public.
As institutional investors continue to accumulate BTC using more traditional financial products, it’s important to keep easy ways to access crypto open to the public—and doing so can result in profit, as Block’s economics show.
