September 29, 2023

  • Jack Dorsey’s Block Company reported a drop in total revenue in the second quarter.
  • The company said that the crypto winter and the plummeting price of bitcoin was what reduced this amount.
  • But Dorsey, a longtime bitcoin bullish, is unlikely to be swayed by the drop.

No one is safe from the blow the crypto market is taking, including notable bitcoin maximalist Jack Dorsey.

The founder and former CEO of Twitter turned more of his attention to digital payments company Block after leaving the social media company in November 2021. The company, which was formerly known as Square, allows users to buy and sell bitcoins through the Cash App payment service, which has been a huge driver of money for Block.

But the company published it second quarter earnings report this week with a decline in total revenue and attributed the plunge to the frozen crypto winter of recent months that saw the price of bitcoin fall from $68,000 in November to $23,000 this month.

“The year-over-year decline in bitcoin revenue and gross profit was primarily driven by a decline in consumer demand and the price of bitcoin, partially related to broader uncertainty surrounding cryptoassets, which more than offset the benefit of price volatility of bitcoin during the quarter,” the company said in its second quarter 2022 shareholder letter.

Cash App generated $1.79 billion in bitcoin revenue from April to June, down 34% year-over-year and gross profit of $41 million bitcoins, down 24% year-over-year.

Block also acknowledged that these figures may continue to fluctuate depending on whether the cryptocurrency winter darkens, scaring consumers away from risky financial moves.

It hasn’t been easy for crypto players as inflation has risen, interest rates have been set higher than in recent years and cryptocurrencies called TerraUSD and Luna – which were supposed to be a safe way to interact with the world of digital assets elements – crashed and burned.

Spooked investors lost faith in the system and started selling cryptocurrency stocks, including bitcoin, which drove its price down.

But those standing firm include so-called bitcoin maximalists, who see this speed bump as a mere hiccup toward a truly decentralized future.

That includes Dorsey, who said in 2021 that bitcoin changes “absolutely everything.”

“I don’t think there’s anything more important in my life to work on,” Dorsey said.

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