In particular, payment platform Block.Inc (NYSE: SQ) has emerged as one of the biggest gainers on the 2022 Fortune 500 list, ranking in position 208, recording a change in rank of 115. The ranking makes Block the 14th highest gainer in the Fortune 500 list. Interestingly, during the period under review, Block recorded a negative profit change of 22% while revenue surged 86%. The profit drop can be tied to a correction in the price of Bitcoin (BTC) in the first half of 2022, notably as the payment company partly earns from Bitcoin’s gross profit.
Block impacted by drop in Bitcoin prices
For instance, during Q2 2022, the firm founded by former Twitter (NYSE: TWTR) CEO Jack Dorsey recorded a $36 million Bitcoin impairment loss. The drop was attributed to “broader uncertainty around crypto assets.” Besides the impact of the crypto market, Block, formerly Stripe, has been hit with the effects of high inflation that translated to changes in consumer behaviour.
Crypto firms filing for bankruptcy
Overall, following the meltdown, crypto lending platforms Celsius and Voyager Digital filed for bankruptcy. Notably, the impact of the market correction was first signalled by Celsius, which barred investors from making withdrawals citing challenges with liquidity. Although the companies have maintained that they are working on a solution, users on the platforms are yet to access their money. Despite the crypto market correction, the firms have also been scrutinised for mismanaging their business approach.
