Block: Q3 Bitcoin revenue $1.97 billion…YoY 18%↓

Fintech company Block, led by Twitter founder Jack Dorsey, recorded $1.97 billion in revenue from its Bitcoin (BTC) business in Q3 this year. This is about an 18% decrease compared with the same period last year ($2.4 billion).

In a letter to shareholders on the 6th (local time), Block CEO Jack Dorsey said Bitcoin remains Block's second-largest source of revenue, accounting for a significant portion of total revenue of $6.11 billion. However, revenue declined year over year due to reduced market trading volume and increased price volatility.

Bitcoin-related costs also fell year over year to $1.89 billion, but the gross margin for the Bitcoin business showed a slight decline. According to the letter, Block currently holds 8780 bitcoins, up from 8485 at the beginning of the year. However, revaluation losses on holdings amounted to $59 million for the quarter and $178 million year to date.

CEO Jack Dorsey emphasized, "Bitcoin is a core growth pillar for Block," saying, "we are expanding an ecosystem that can materially utilize Bitcoin across payment networks and services."

Meanwhile, in October Block launched a retail Bitcoin payment tool and a dedicated wallet service to expand Bitcoin payment infrastructure. Earlier this year, it paid a $40 million settlement to the New York Department of Financial Services (NYDFS) over AML deficiencies in part of its Bitcoin business.