Block’s Cash App, a popular mobile payments platform, reported a significant surge in the value of its bitcoin sales during the second quarter of 2023. According to the company, the total amount of bitcoin sold to Cash App customers in Q2 reached a staggering $2.39 billion. This represents a notable 34% increase compared to the previous year.
Cash App’s bitcoin sales translated into a gross profit of $44 million during the three months. This figure takes into account the costs associated with purchasing and making the asset available to customers. The Q2 bitcoin gross profit was slightly lower than the previous quarter, which recorded $50 million, despite higher levels of bitcoin sold.
Formerly known as Square, the company rebranded as Block and launched bitcoin trading on Cash App back in 2018. Block has since been heavily investing in the cryptocurrency, solidifying its position in the market. During Q2, Block did not face any impairment loss on its bitcoin investment. This indicates that the fair value of its bitcoin holdings exceeded the carrying value.
Aside from its successful bitcoin trading activities, Block also introduced its self-custody bitcoin wallet, Bitkey, which entered the public beta stage in June. The company aims to launch Bitkey globally later this year. To facilitate the seamless buying and transferring of bitcoin, Block has partnered with Coinbase, allowing Bitkey users to purchase bitcoin directly from the exchange and transfer it to their wallets.
In a move to further establish itself in the cryptocurrency industry, Block announced plans to develop its own custom silicon for bitcoin mining hardware. The company has already struck a deal with Intel for mining ASICs and intends to make its mining technology open-source, demonstrating its commitment to innovation and community collaboration.
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