Block Inc. bought 173 Bitcoin in the second quarter

Block Inc., the payment service provider led by Twitter co-founder Jack Dorsey, published its figures for the second quarter yesterday. The company behind the Cash App, which is popular in the US, announced that it had purchased 173 Bitcoin, increasing its holdings to 8,211 units.

As of June 30, 2024, we held approximately 8,211 bitcoins for investment purposes [...], of which approximately 173 were purchased in the second quarter of 2024.
_{From the shareholder letter}

Several months ago, Block Inc. announced that it was now focusing on a Bitcoin savings plan. Since April, the payment service provider has been using ten percent of its gross profit from the Bitcoin business to increase its already ample investment position - Blocktrainer.de reported.

In the second quarter, Jack Dorsey's company was able to acquire 173 BTC, with a current equivalent value of around eleven million US dollars. Block Inc. currently holds more than 500 million US dollars in Bitcoin. The majority of this holding stems from two major one-off purchases made more than three years ago.

After an initial rise in the share price following the quarterly figures, Block shares are trading lower today - but this is more likely due to the weak US labor market data, which is putting pressure on the market as a whole today. The company's turnover fell just short of expectations, but the payment service provider was able to report higher earnings per share than the market had expected. Overall, net income amounted to 195.3 million US dollars.

With the Bitcoin business of the Cash App, Block Inc. achieved a gross profit of USD 67 million - an increase of a whopping 52.2 percent compared to the same quarter of the previous year. "Bitcoin revenue" increased by nine percent year-on-year to USD 2.61 billion. The company records the "total sale amount of bitcoin sold to customers." as "Bitcoin revenue". Among other things, the payment service provider offers trading in BTC with its popular Cash app. Accordingly, this figure is also an indicator of retail investors' interest in the asset.

If business continues to develop so well and Block sticks to its Bitcoin strategy, the public limited company, which is currently worth almost 40 billion US dollars, could become a major, regular buyer of Bitcoin. Although the public company led by Bitcoin advocate Jack Dorsey pursues a far less aggressive approach than the software company MicroStrategy, the monthly Bitcoin purchases in the millions should not be underestimated - nor should the signaling effect of these purchases.