Jack Dorsey, Twitter & Square CEO
Quarterly earnings reports are starting to pour in across the financial sector, and with them, updates on the state of crypto adoption across the industry.
Although some companies are, understandably, still feeling the chill of crypto winter, even those are doing better than expected by analysts. In the case of firms with other priorities who have nonetheless adopted crypto in some measure, such as MicroStrategy, the asset class has, so far, proven to be a part of their success.
Block – better known by its former name Square, which is still used for its business platform – has reported a slight increase in revenues and earnings per share, in spite of doubts fueled in part by a report published by short-sellers at Hindenburg Research. The firm is now reportedly considering legal actions against the company.
“We intend to work 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 its quarterly results turned out just fine, Block’s stock took a nosedive shortly after the report was published. Fortunately for its investors, the firm has reported that its earnings per share are now 40 cents, as opposed to analysts’ predictions of 35 cents. At the time this article was written, the company stocks were worth just under $60, according to MarketWatch.
Jack Dorsey, the 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 part in his 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 prior quarterly report, in which Bitcoin sales decreased by 7% YoY.
Although revenue resulting from BTC sales only amounted to a total of $50 million out of the firms’ total gross profit of $1.71 billion, the results nevertheless prove 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 financials show.