Former Twitter CEO Jack Dorsey’s digital payments firm, Block Inc., registered a $1.9 billion profit in the second quarter of 2022 despite the ongoing turmoil within the crypto market. However, revenue from Bitcoin services fell and only $41 million of the total profit.

The reduced revenue from Bitcoin, compared to previous years, was attributed to price volatility and a lack of consumer demand.

According to the Q2 report, digital payment company saw its year-over-year profits rise by approximately 29%. This is despite a reduced Bitcoin business.

Block Inc. Bitcoin business

Block Inc. generates Bitcoin revenue through BTC trading services, via its digital payment application Cash App. Bitcoin could be a high cost venture for digital payments company because of the reduced gross Bitcoin profit.

Block Inc. spoke out about the decreased Bitcoin revenue.

“The year-over-year decrease in Bitcoin revenue and gross profit was driven primarily by a decline in consumer demand and the price of bitcoin, related in part to broader uncertainty around crypto assets, which more than offset the benefit of volatility in the price of Bitcoin during the quarter.”

Although it is a loss on paper, the Block also suffered a $36million impairment loss in its BTC holdings.

The firm was, however, quick to emphasize that the slump in Bitcoin profits does not reflect the broader performance of the firm’s business.

Following Block’s Q2 performance, investors seem to be quite impressed despite the fact that the firm’s stock dropped by over 7% in the after-hours trading.