Dorsey-led Block posts quarterly loss as Bitcoin slumps; shares fall

Aug 4 (Reuters) – Jack Dorsey-led Block Inc (SQ.N) reported a second-quarter loss on Thursday as a brutal sell-off in the cryptocurrency market hurt the fintech firm’s Earnings from Bitcoin transactions on its platform.

Shares of Block, formerly known as Square, fell nearly 6% after hours.

Bitcoin prices fell about 36 percent in the quarter, weighed down by regulatory hurdles, rising interest rates and the Ukraine crisis, which dampened investor appetite for riskier assets.

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This caused Block’s bitcoin revenue to drop 34% to $1.79 billion. Total revenue fell 6% to $4.4 billion.

Net loss attributable to common stockholders was $208 million, or 36 cents a share, for the quarter ended June 30, compared with a profit of $204 million, or 40 cents a share, a year earlier.

Excluding one-time items, the company reported a profit of 18 cents, beating analysts’ expectations of 17 cents a share, according to Refinitiv data.

Rival payments giant PayPal (PYPL.O) reported better-than-expected earnings earlier this week and raised its annual profit more

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Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath

Our standard: Thomson Reuters fiduciary principles.

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