Quarterly earnings reports have been pouring in across the financial sector, shedding light on crypto adoption in the industry. While some companies are still feeling the impact of the crypto winter, others are seeing success, even those with different priorities who have adopted crypto to some degree.
One such firm is Block, formerly known as Square, for its business platform. Despite doubts fueled partly by a report from short-sellers at Hindenburg Research, Block reported a slight increase in revenues and earnings per share. The company is reportedly considering legal action against the research firm for its inaccurate and misleading report.
While Block’s stock took a dip shortly after the report was published, the company’s earnings per share were actually higher than analysts’ predictions. When writing, the company’s stocks were valued at just under $60.
One of the reasons for Block’s success this quarter is the role of Bitcoin in their financial bottom line. Bitcoin sales on CashApp, one of Block’s most popular products, saw a 25% increase since last year, in contrast to the prior quarterly report where sales decreased by 7% year-over-year.
Although revenue from BTC sales only accounted for $50 million out of Block’s total gross profit of $1.71 billion, the results prove that Bitcoin adoption rates are still on the rise for the general public. This is an essential trend as institutional investors continue accumulating BTC using more traditional financial products.
Jack Dorsey, co-founder, and former CEO of Twitter, who is currently Block’s CEO, has long believed in Bitcoin. His beliefs seem to be paying off, with cryptocurrency playing a significant role in Block’s financial success this quarter. And with increasing adoption rates, it’s possible that Bitcoin could continue to be a valuable asset for the company.
For the industry, easy access to crypto is important to keep open to the public, not just for individual investors but for firms like Block. As the financial sector continues to navigate the evolving crypto landscape, success stories like Block’s remind us of the potential benefits of adopting this asset class.
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