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Dorsey-led Block posts second-quarter loss due to bitcoin slump


Aug 4 (Reuters) – Jack Dorsey-led Block Inc ( SQ.N ) reported a second-quarter loss on Thursday as a widespread selloff in cryptocurrency markets hit the fintech firm’s earnings from bitcoin trading on its platform.

Bitcoin prices fell about 36% in the quarter, under pressure from regulatory hurdles, rising interest rates and the crisis in Ukraine that have curbed investor appetite for riskier assets.

That sent Block’s bitcoin revenue down 34% to $1.79 billion. Total revenue fell 6% to $4.4 billion.

Net loss attributable to common shareholders was $208 million, or 36 cents per share, in the quarter ended June 30, compared with earnings of $204 million, or 40 cents per share, a year earlier.

In sharp contrast to Block’s results, rival payments giant PayPal ( PYPL.O ) earlier this week reported better-than-expected earnings and raised its annual profit. read more

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Reported by Mehnaz Yasmin in Bengaluru. Edited by: Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.



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