Payment platform Block's gross profit continues to grow, with customers continuing to purchase Bitcoin through Cash App.

Twitter founder Jack Dorsey's payment platform Block, formerly known as Square, released its second-quarter financial report for 2023, showing a 27% increase in gross profit to $1.87 billion, driven by the growth of Square and Cash App compared to the same period last year. Bitcoin sales on Cash App also saw significant growth, with Block stating that customers continue to purchase more digital assets.

Block Continues to Increase Gross Profit

Driven by the growth of Square and Cash App, the gross profit margin increased by 27% compared to the same period last year, reaching $1.87 billion. Of this, Square's gross profit was $888 million, an 18% increase from the same period last year, while Cash App's gross profit was $968 million, a 37% increase from the same period last year. The second-quarter net income was -$123 million, but the final adjusted EBITDA was $384 million. The main adjustment this time was stock-based compensation expenses totaling $319 million.

Note: EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization, which better represents the company's operating conditions.

The Bitcoin sales volume on its Cash App increased by 34% compared to the same period last year, reaching $2.4 billion. The gross profit from Bitcoin sales was $44.25 million. Block stated that customers continue to purchase more digital assets. Although the average market price of Bitcoin has fallen compared to the same period last year, revenue and gross profit from Bitcoin sales have still grown due to an increase in the quantity of Bitcoin purchased by customers.

Bitcoin Investments Have Been Profitable

According to statistics from Buy Bitcoin worldwide, Block holds 8,027 Bitcoins, ranking seventh among all listed companies.

According to its financial report, as of June 30, 2023, Block has accumulated $220 million in Bitcoin investments with an average cost per unit of approximately $27,400. The current fair value is $244.6 million, showing a profitable situation.

Block also holds 25,058 Bitcoins for customers.

Block Stock Price Continues to Weaken

Despite announcing financial results that exceeded market expectations, investors seem unimpressed. After Block released its financial report after the U.S. stock market closed yesterday, the stock price fell by 5.53% to $69.38. Block is also one of the underperforming stocks under the Ark this year, dragging down the fund's returns.