As a seasoned researcher with a keen eye for market trends and a heart that beats for Bitcoin, I find myself both intrigued and slightly disappointed by Block Inc’s Q3 performance. The flatlining of Bitcoin revenue compared to last year is a stark contrast to the meteoric rise we’ve seen in the cryptocurrency market.
In the hours following market close, shares of Block Inc. (SQ) experienced a drop due to the company’s Bitcoin revenue remaining stagnant in Q3 relative to the previous year, and its overall revenues falling short of projections made by financial analysts on Wall Street.
On November 7, Block’s stock price dipped by 12.3% to reach a low of $66 approximately ten minutes post-market close, following a daily decline of 3.05%, which closed the day at $75.27, as reported by Google Finance.
It’s since recovered to a loss of 1.7% and its share price is up 4.2% so far this year.
In a recent report, the business responsible for the point-of-sale system Square and the financial technology app Cash App, revealed that its Q3 earnings increased by 6.4% compared to the same period last year, reaching approximately $5.98 billion. However, this figure fell short of the predicted $6.17 billion by more than 3%.
In simple terms, the earnings generated by Block (formerly Square) from Bitcoin transactions – primarily commissions on purchases of this cryptocurrency and its main income source – remained relatively unchanged compared to Q3 of 2023, hovering near $2.43 billion.
Additionally, the company announced that they are “phasing out” their Decentralized Finance (DeFi) software business TBD, and reducing their involvement in the music streaming platform TIDAL. This move is intended to funnel resources towards their cryptocurrency-related ventures.
In the shareholder letter, Block expressed that this situation allows us to channel funds into our Bitcoin mining project. This project demonstrates a robust alignment with the market and boasts a steady flow of demand, he added. Furthermore, he mentioned Bitkey, our personal Bitcoin wallet service for secure storage.
In the past three months, Block’s quarterly earnings skyrocketed by 19% compared to last year, reaching an impressive $2.25 billion in gross profits. Additionally, they reported a net income of $283.7 million, which aligns perfectly with what financial analysts predicted.
During the period spanning from July to September 30 (the third quarter), Bitcoin generally maintained a stable value, averaging approximately $60,000, which might have contributed to the reported revenue shortfall observed in that timeframe.
Since then, the value of this digital currency has consistently reached record heights. On November 7th, according to TradingView, it peaked just shy of $77,000, touching $69,999.99.
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2024-11-08 04:36