Jack Dorsey‘s payment conglomerate, Block, has announced its earnings results for the second quarter of 2024, revealing a notable 9% increase in Bitcoin revenue year over year. In its recent shareholder letter, Block reported a Bitcoin revenue of $2.61 billion for Q2 2024, contributing to a total net revenue of $6.16 billion for the quarter. This represents an 11% growth compared to the same period in 2023.
Cash App Performance
Excluding Bitcoin income, the company’s revenue stood at $3.54 billion, marking a 13% year-over-year increase. Block recognizes Bitcoin revenue as the total amount of BTC sold to customers.
Block‘s Cash App generated $4.13 billion in revenue during the quarter. Excluding Bitcoin transactions, this figure was $1.52 billion. The Cash App also reported a significant increase in Bitcoin gross profit, reaching $67 million in Q2 2024, a 52% rise compared to the previous year. This growth was primarily driven by an increase in the average price of Bitcoin, which has surged over 45% in 2024, currently trading at $64,777.
Bitcoin Holdings and Financial Position
The company disclosed a $70 million loss from its Bitcoin reserves. As of June 30, 2024, Block held approximately 8,211 BTC on its balance sheet for investment purposes, with a fair value of $515 million. During the past quarter, Block acquired around 173 BTC.
Block‘s total gross profit rose by 20% year-over-year, reaching $2.23 billion. Net income attributable to common shareholders was $195 million for Q2 2024, up from $102 million in the same period last year.
Capital Raising and Strategic Plans
In May, Block announced plans to raise $2 billion through senior unsecured notes for qualified institutional investors. The company ended Q2 2024 with $10.3 billion in available liquidity, including the net proceeds from this debt offering. According to the company, these funds will be used for debt repayment, acquisitions, strategic transactions, capital expenditures, investments, and working capital.
Implications for Investors
Block‘s Q2 2024 results highlight the company’s strong performance in the cryptocurrency sector, particularly through its Cash App. The significant growth in Bitcoin revenue and gross profit, coupled with strategic capital raising, positions Block for continued expansion and resilience in the volatile crypto market. Investors will be watching closely to see how Block leverages its increased liquidity and navigates the evolving financial landscape.
