Dorsey-led Block posts loss for second quarter on bitcoin slump

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:Jack Dorsey-led Block Inc on Thursday reported a loss for the second quarter as a bruising selloff in cryptocurrency markets hurt the fintech company’s earnings from bitcoin trades on its platform.

Bitcoin prices slumped about 36 per cent in the quarter, under pressure from regulatory hurdles, rising interest rates and the Ukraine crisis that have walloped investor appetite for riskier assets.

That sent Block’s bitcoin revenue down 34 per cent to $1.79 billion. Total revenue fell 6 per cent to $4.4 billion.

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

In sharp contrast to Block’s results, rival payments giant PayPal earlier this week reported better-than-expected earnings and raised its annual profit guidance.

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