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

Jack Dorsey’s payment conglomerate Block Inc. has released its earnings results for the second quarter of 2024, posting a 9% growth in Bitcoin revenue year over year.

According to a shareholder letter, Block’s Bitcoin (BTC) revenue topped $2.61 billion over the period, with total net revenue reaching $6.16 billion in the quarter — an 11% growth compared to the same period in 2023.

Excluding Bitcoin income, revenue was $3.54 billion, up 13% year over year. Block recognizes Bitcoin revenue as the total amount of Bitcoin sold to customers.

Block’s Cash App generated $4.13 billion in revenue in the quarter. Excluding gains from Bitcoin transactions, revenue was $1.52 billion. Cash App generated $67 million in Bitcoin gross profit in the second quarter of 2024, an increase of 52% over the same period last year.

According to Block, Bitcoin gross profit expansion was driven primarily by a rise in the average price of BTC. The cryptocurrency is up over 45% so far in 2024, trading at $64,777 at the time of writing. 

The company also updated the status of its Bitcoin reserves, posting a $70 million loss from its BTC holdings. As of June 30, 2024, Block held approximately 8,211 Bitcoin on its balance sheet for investment purposes, with a fair value of $515 million. The company acquired approximately 173 BTC over the past quarter.

Block’s total gross profit rose 20% over a year, standing at $2.23 billion. Net income attributable to common shareholders stood at $195 million in the second quarter of 2024, up from $102 million over last 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 noted in its letter.

According to Block, funds from the debt sale would be used for debt repayment, acquisitions, strategic transactions, capital expenditures, investments, and working capital.