Jack Dorsey’s Block Inc profit declines due to fall in bitcoin prices
Fintech firm Block Inc, founded by Twitter’s co-founder Jack Dorsey, has missed market estimates for its Q1 profit of CY22. The company’s bitcoin revenue halved in the quarter to $1.73 billion due to fall in cryptocurrency prices which led to the weakening of bitcoin demand.
After Q1 ended on March 31, CY22, Block’s revenue fell 22% to $3.96 billion. The company earned an adjusted profit of 18 cents per share which fell short of analysts’ estimates of 21 cents, according to Institutional Brokers’ Estimate System (IBES) data from Refinitiv.
During Q1, Block closed its $29 billion purchase of Australian buy now, pay later pioneer Afterpay Ltd. It created a transactions base for competing with banks and tech firms in the financial sector’s fastest-growing business. Shares of Block, formerly known as Square, were 10% higher in extended trading.
Bitcoin has dropped 21% so far this year because of factors such as the Russia-Ukraine conflict and policy tightening by the Federal Reserve.
(With inputs from Reuters)
