Crypto Winter Is Here For Jack Dorsey's Company, Block

Jack Dorsey’s Block company reported a drop in its overall revenue in its second quarter.
The firm said that the crypto winter and the drop in the price of bitcoin was what reduced that number.
But Dorsey, a longtime bitcoin maximalist, is unlikely to be swayed by the decline.
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No one is safe from the cryptocurrency market crash, not even Jack Dorsey.

The founder and former CEO of Twitter turned more of his attention to his digital payments company Block after leave the social media company in November 2021. The company, formerly known as Square, allows users in part to buy and sell bitcoin through its Cash App payment service, which has been a huge moneymaker for Block.

But the company published your second quarter earnings report this week with a decline in overall revenue and attributed the drop to the crypto winter of recent months; who has seen the price fall bitcoin from $68,000 in November to $23,000 this month.

“The year-over-year decline in bitcoin revenue and gross earnings was primarily driven by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty surrounding crypto assets, which more than offset the benefit of volatility in the price of bitcoin during the quarter,” the company said in its Q2 2022 shareholder letter.

Cash App generated $1.79 billion in bitcoin revenue from April to June, a 34% year-over-year decline; and $41 million in gross bitcoin earnings, a 24% year-over-year drop.

Block also acknowledged that those figures could continue to fluctuate depending on whether the crypto winter darkens, scaring consumers of risky financial moves.

The crypto winter has strongly impacted various cryptocurrency companies

It hasn’t been easy for crypto businesses as inflation has spiked, interest rates have been set higher than they have been in years, and cryptocurrencies called TerraUSD and Luna, which were supposed to be a secure way to interact with the world of digital assets, collapsed.

Frightened investors lost confidence in the system and began selling crypto stocks, including bitcoin, driving its price down.

But those left standing include the so-called bitcoin maximalists, who see this blip as merely a setback to a truly decentralized future.

“Maximalist” is a term coined in the crypto community to refer to people who believe that bitcoin is the only relevant cryptocurrency, according to Liquid.

That includes Dorsey, who said in 2021 that bitcoin changes “absolutely everything.”

“I don’t think there’s anything more important in my life to work on,” Dorsey said.

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