As a result, in the second quarter, Block's gross profit from bitcoin buying and selling transactions fell 24% to $41 million.
Block supports bitcoin transactions through the online payment service Cash App.Block CFO Amrita Ahuja explained: "While our gross profit was healthy as of July, now that the market is entering a period of potential instability, we realize the importance of discipline when investing."
Block recently acquired "buy now, pay later" company AfterPay, which contributed $150 million in gross profit in the second quarter.Net loss attributable to Block common shareholders in the second quarter was 36 cents a share, compared with a profit of 40 cents a share a year earlier.Block currently trades at around 65 times earnings, well above PayPal's 22 times.
Richard Gardner, CEO of Modulus Global, which provides software to major Wall Street clients, said: "Block's unique market strategy has allowed it to be a leader for a while because itCombining the consumer-centric Cash App with the merchant-centric Square.”
