Jack Dorsey’s Crypto Firm Posts a Disappointing Second-Quarter Report

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Twitter CEO Jack Dorsey
Screenshot from TED video on YouTube

The crypto-winter market has wreaked havoc on all crypto businesses, including bitcoin maximalist Jack Dorsey.

The founder and ex-CEO of Twitter scaled his business experience to his payments firm Block after stepping down from the social media company in November 2021. The crypto company, which was formerly known as Square, enables individuals to buy and sell bitcoin through its payments service Cash App, which has been a colossal money driver for Block.

But the firm posted its second-quarter earnings report this week with a decline in overall revenue and attributed the plunge to the crypto winter of the last few months that has seen bitcoin’s price slip from $68,000 in November to $24,000 this month.

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“The year-over-year decrease in bitcoin revenue and gross profit was driven primarily by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of bitcoin during the quarter,” the company said in its Q2 2022 shareholder’s letter.

 

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

Block also noted figures might continue to fluctuate depending on if the crypto winter darkens, scaring consumers off from risky financial moves.

Still, Dorsey, the so-called bitcoin maximalists, still see this speed bump as a mere hiccup toward a genuinely decentralized future. He said in 2021 that bitcoin changes “absolutely everything.”

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