As the financial sector releases its quarterly earnings reports, updates on the state of crypto adoption across the industry are emerging. Despite the lingering effects of the crypto winter, firms that have adopted crypto are reaping benefits. For instance, MicroStrategy, which has integrated crypto in its operations, has seen positive results.
Block’s Quarterly Results
Block, formerly known as Square, has reported a slight increase in revenues and earnings per share. This is despite doubts fueled, in part, by a report published by short-sellers at Hindenburg Research. The firm’s quarterly results were better than expected, with earnings per share amounting to 40 cents, compared to analysts’ predictions of 35 cents.
However, Block’s stock took a nosedive shortly after the Hindenburg Research report was published. The firm is now considering legal action against the company for the “factually inaccurate and misleading report they shared about our Cash App business today.”
The Role of Bitcoin in Block’s Success
Block’s CEO, Jack Dorsey, a known Bitcoin believer, has integrated the cryptocurrency into the company’s financial operations. Bitcoin sales on CashApp, one of Block’s most hyped products, increased by 25% since the previous year. This is a significant improvement from the prior quarterly report, where Bitcoin sales decreased by 7% YoY.
Although the revenue produced by BTC sales only accounted for $50 million out of the company’s total gross profit of $1.71 billion, the results prove that Bitcoin adoption rates are still increasing for the general public. By keeping easy ways to access crypto open to the public, Block’s financials demonstrate that it can result in profit.
As institutional investors continue to accumulate BTC using more traditional financial products, it’s essential to keep crypto accessible to the public. Block’s quarterly results indicate that crypto adoption is still increasing, and the financial sector should take note.