Jack Dorsey's Block Adds 108 Bitcoin in Q2, Posts Higher Revenue and Profit

In brief

Block purchased 108 BTC during Q2 with a cost basis of $11 million.
Its total bitcoin investment is now valued at $1.15 billion, with $2.14 billion coming from Bitcoin sales through Cash App.
The company recognized $212.2 million gain on bitcoin remeasurement during the quarter.

Jack Dorsey’s Block Inc. continued its bitcoin accumulation strategy in the second quarter, adding 108 BTC to bring its total corporate treasury holdings to 8,692 BTC.

The company reported total revenue of $6.05 billion in Q2, a 1.5% rise from $5.96 billion in Q1, while gross profit rose 8.2% to $2.54 billion from $2.33 billion, according to the company’s latest 10-Q form submitted to the U.S. Securities and Exchange Commission.

Of the total revenue, $2.14 billion came from Bitcoin sales via Cash App, generating a gross profit of $66 million from the world’s largest crypto.

The Bitcoin purchase, with a cost basis of $11 million, continues the company’s steady accumulation strategy and brings the total Bitcoin investment to $1.15 billion at current market prices near $117,000, as per CoinGecko.

Block recognized a $212.2 million gain from the remeasurement of its bitcoin investment during the quarter, compared to a $70.1 million loss in the same period last year, according to the filing.

Accumulation strategy

The Q2 purchase continues a pattern of steady bitcoin buying that has characterized Block’s approach under CEO Jack Dorsey.

“While MicroStrategy’s strategy is a high-conviction model for a bitcoin-first company, Block’s measured approach is a far more sustainable and realistic blueprint for mainstream corporate adoption,” Charmaine Tam, head of OTC trading at Hex Trust, told Decrypt.

The company had accumulated approximately 207 BTC in Q1, with a combined cost basis of $20.6 million for both quarters.

Block has integrated crypto across multiple business lines, including plans to enable bitcoin payments through its Square merchant network and development of bitcoin mining hardware through its Proto division.

Tam said Block’s incremental accumulation alongside its operational business demonstrates “how a company can prudently integrate the asset into its treasury without taking on the same level of capital risk.”

Block shares jumped 6% in after-hours trading following the report’s release. The fintech company was added to the S&P 500 index last month.

“While treasury adoption is a valuable first step, creating tangible utility through real-world products is the most powerful and sustainable driver of long-term success for the ecosystem,” Tam added.