The 2022 cryptocurrency market meltdown has taken a significant toll on most businesses, with a majority recording a drop in valuations and income while others have been forced into bankruptcy. However, some crypto entities appear to be thriving amid the turbulence while awaiting possible improved fortunes in the digital assets market.
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. 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.”
“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,” the company said.
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.
Elsewhere, the Fortune Global 500 list released on August 3 ranked Walmart (NYSE: WMT) as the top United States corporation retaining the position for nine years in a row. In the second spot is the ecommerce giant Amazon (NASDAQ: AMZN). The Fortune 500 list ranks the largest U.S. corporations by total revenue for their fiscal years.
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.