In short: Block, formerly known as Square, has reported a slight increase in revenues and earnings per share, despite doubts fueled by short-sellers at Hindenburg Research. Bitcoin played a significant role in the improvement, with Bitcoin sales on its CashApp increasing by 25% since last year, in contrast to a prior quarterly report during which Bitcoin sales had dropped by 7% YoY. Although only contributing $50m from gross profits of $1.71bn, the results suggest an increasing public adoption of Bitcoin.
Our quick analysis:
The financial sector is buzzing as quarterly earnings reports flood in, shedding light on the state of crypto adoption across the industry. Unsurprisingly, some companies are still recovering from the crypto winter, but even they seem to be doing better than the analysts had predicted. On the other hand, companies like MicroStrategy, who adopted cryptos despite having other priorities, have seen a boost in their success rate.
One such company is Block, previously known as Square. The company has reported a rise in both revenues and earnings per share despite the recent report by the short-seller Hindenburg Research. The report had caused doubts about the firm’s future, but the company remains unfazed. In fact, Block is reportedly planning on taking legal action against Hindenburg Research for its allegedly inaccurate and misleading report about the Cash App business.
Although the company's stock took a significant nosedive after the report's publishing, the figures show that Block has beaten expectations. According to a recent report, the firm's earnings per share has surpassed analysts' predictions of 35 cents by a margin, currently sitting at 40 cents per share. The current value of the company stock is just under $60 as reported by MarketWatch.
The co-founder and CEO of Jack Dorsey, previously associated with Twitter, is a Bitcoin supporter. According to Block, the cryptocurrency played a vital role in the company’s financial recovery, which could lead to greater successes in the future. The results show that Bitcoin adoption rates are increasing as Bitcoin sales on Cash App, one of the company's highly hyped products, increased by 25% since the last year. In contrast, the previous quarterly report showed that Bitcoin sales had decreased by 7% YoY.
Even though the results showed Bitcoin sales accounting for only $50 million out of the firm’s total gross profit of $1.71 billion, the figures indicate that easy access to crypto, even for the general public, can result in profits. As institutional investors continue to accumulate BTC through more traditional financial means, digital currencies' acceptance can result in more profits for companies like Block.
In conclusion, Block's financial reports show that crypto adoption is on the rise, and this trend is likely to lend itself to other companies as well. Digital currencies' acceptance offers an unprecedented opportunity for traditional businesses to increase their profits and overall success rate.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
The financial sector is buzzing as quarterly earnings reports flood in, shedding light on the state of crypto adoption across the industry. Unsurprisingly, some companies are still recovering from the crypto winter, but even they seem to be doing better than the analysts had predicted. On the other hand, companies like MicroStrategy, who adopted cryptos despite having other priorities, have seen a boost in their success rate.
One such company is Block, previously known as Square. The company has reported a rise in both revenues and earnings per share despite the recent report by the short-seller Hindenburg Research. The report had caused doubts about the firm’s future, but the company remains unfazed. In fact, Block is reportedly planning on taking legal action against Hindenburg Research for its allegedly inaccurate and misleading report about the Cash App business.
Although the company's stock took a significant nosedive after the report's publishing, the figures show that Block has beaten expectations. According to a recent report, the firm's earnings per share has surpassed analysts' predictions of 35 cents by a margin, currently sitting at 40 cents per share. The current value of the company stock is just under $60 as reported by MarketWatch.
The co-founder and CEO of Jack Dorsey, previously associated with Twitter, is a Bitcoin supporter. According to Block, the cryptocurrency played a vital role in the company’s financial recovery, which could lead to greater successes in the future. The results show that Bitcoin adoption rates are increasing as Bitcoin sales on Cash App, one of the company's highly hyped products, increased by 25% since the last year. In contrast, the previous quarterly report showed that Bitcoin sales had decreased by 7% YoY.
Even though the results showed Bitcoin sales accounting for only $50 million out of the firm’s total gross profit of $1.71 billion, the figures indicate that easy access to crypto, even for the general public, can result in profits. As institutional investors continue to accumulate BTC through more traditional financial means, digital currencies' acceptance can result in more profits for companies like Block.
In conclusion, Block's financial reports show that crypto adoption is on the rise, and this trend is likely to lend itself to other companies as well. Digital currencies' acceptance offers an unprecedented opportunity for traditional businesses to increase their profits and overall success rate.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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