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Quarterly earnings reports are beginning to emerge across the financial sector, providing updates on the state of cryptocurrency adoption industry-wide.
Although some companies are still feeling the effects of the crypto downturn, many are performing better than analysts predicted. For firms with other primary priorities that have nonetheless adopted cryptocurrency to some extent, such as MicroStrategy, the asset class has proven to be a component of their success.>
Beating Expectations and Short-Seller Predictions
Block – better known by its former name Square, which is still used for its business platform – reported a slight increase in revenues and earnings per share, despite doubts fueled in part by a report published by short-sellers at Hindenburg Research. The firm is reportedly considering legal action against the short-seller.
“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.”
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Although its quarterly results turned out well, Block’s stock took a nosedive shortly after the report was published. Fortunately for its investors, the firm reported earnings per share of 40 cents, compared to analysts’ predictions of 35 cents. At the time of writing, the company’s stock was trading at just under $60, according to MarketWatch.
Bitcoin’s Role in Block’s Recovery
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 Cash App – one of Block’s most prominent 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% year-over-year.
Although revenue resulting from BTC sales amounted to a total of $50 million out of the firm’s total gross profit of $1.71 billion, the results nevertheless prove that Bitcoin adoption rates are still increasing among the general public.
As institutional investors continue to accumulate BTC using more traditional financial products, it is important to keep easy ways to access crypto open to the public – and doing so can result in profit, as Block’s financials show.
