- Jack Dorsey’s Block Company reported a decline in total revenue in the second quarter.
- The company said that it was the crypto winter and the bitcoin price drop that brought this number down.
- But Dorsey, a longtime Bitcoin fanatic, is unlikely to be affected by the drop.
No one is safe from blows to the cryptocurrency market, including the notable Bitcoin cap Jack Dorsey.
The founder and former CEO of Twitter turned more attention to his digital payments company Block after leaving the social media company in November 2021. The company, formerly known as Square, partially allows users to buy and sell bitcoin through the Cash App payments service, which was Huge money engine for Block.
But the company published her Second Quarter Earnings Report This week with a drop in total revenue, he attributed the drop to the tepid crypto winter of the past few months which saw the bitcoin price drop from $68,000 in November to $23,000 this month.
“The annual decline in bitcoin revenue and gross profit was primarily driven by lower consumer demand and the price of bitcoin, partly related to broader uncertainty around crypto assets, which more than offset the volatility advantage of bitcoin during the quarter,” the company said in its second quarter shareholder letter. from 2022.
Cash App Generated $1.79 Billion in Bitcoin Revenue From April to June, down 34% year-on-year, and $41 million in total bitcoin earnings, down 24% year-on-year.
Block also acknowledged that these numbers may continue to fluctuate depending on whether the crypto winter darkens, scaring consumers away from risky financial moves.
It has not been easy for crypto operators as inflation has soared, interest rates are set higher than they have been in years, and cryptocurrencies called TerraUSD and Luna – which were supposed to be a safe way to interact with the world of digital assets – have crashed.
Terrified investors lost faith in the system and began selling cryptocurrency shares, including bitcoin, which drove its price down.
But those who have stayed in place include the so-called Bitcoin extremists, who see this rapid rise in speed as just a whirlwind toward a truly decentralized future.
This includes Dorsey, who said in 2021 that bitcoin is changing “absolutely everything.”
“I don’t think there is anything more important in my life to work on,” Dorsey said.