Block: More Unnecessary Bitcoin Pain

Block continues to report strong growth in gross profits.Investors need to learn to strip out transaction costs and bitcoin revenues to accurately analyze financials.The stock trades for less than 10x gross profits while the P/E multiple remains elevated due to aggressive spending ultimately looked past by growth investors.While fintechs have rebounded sharply in the last few weeks, Block (SQ) still trades below the levels where the stock traded back in 2018 due to bitcoin hampered results. The company actually reported a very solid quarter, but the market just isn't capable of getting past the headline weak revenue numbers due to the collapse in the low margin bitcoin transaction revenues. My investment thesis is far more Bullish on the stock while the market is distracted by misleading numbers.Focus On Gross ProfitsTechnically, Block reported Q2'22 revenues fell 6%. Not many fintechs are reporting such weak revenue metrics. PayPal (PYPL) surged after reporting revenues grew 9% and a stock buyback combined with activist involvement were positive signs for the business.PayPal wouldn't have rallied on a report where sales fell. Though, smart investors in Block wouldn't even pay attention to the topline metric used by investors in most stocks.For Q2'22, Block reported bitcoin revenues dived nearly $1 billion from last Q2. Similar to last year, the bitcoin revenues only generated ~$41 million in gross profits in the June quarter....