Block reports $173M Bitcoin impairment loss in Q1

Block, the blockchain and mobile payments company led by Jack Dorsey, posted a $173 million impairment loss on its Bitcoin holdings in the first quarter, The Block reported. The company's total corporate and customer Bitcoin holdings amounted to 28,355 BTC, valued at approximately $2.2 billion. Despite the Bitcoin-related loss, Block's overall financial performance was strong. First-quarter gross profit rose 27% year-over-year to $2.91 billion, while adjusted operating income increased by 56% to $728 million. The Cash App division saw its gross profit climb 38% to $1.91 billion, driven by growth in lending, banking, and commerce, though its Bitcoin-related revenue declined by 31% from the previous year. In the Square division, Bitcoin-related revenue was around $28 million, but similar costs resulted in a minimal contribution to profit. Block raised its full-year guidance, citing business execution and future expectations.