- Block’s Bitcoin ecosystem gross profit fell 31% year over year in the second quarter after the company reduced certain Cash App Bitcoin transaction fees.
- Despite weaker Bitcoin-related earnings, total company gross profit climbed 25% to $3.17 billion, prompting Block to raise its full-year outlook.
- The company also expanded its crypto offerings by launching USDC stablecoin support within Cash App.
Block, the fintech company led by Jack Dorsey, reported a sharp decline in Bitcoin-related profitability during the second quarter as lower transaction fees and weaker trading activity weighed on its crypto business.
The company’s Bitcoin ecosystem generated $1.89 billion in revenue during the quarter, down 13% from a year earlier but up modestly from the first quarter. Gross profit from the segment declined to $72 million, compared with $105 million in the same period last year.
Lower Fees Pressure Bitcoin Revenue
Block attributed the weaker results primarily to its decision to reduce fees on certain Bitcoin transactions conducted through Cash App.
The company said the pricing changes were intentional as part of its broader strategy, though softer Bitcoin trading activity throughout 2026 also contributed to the decline.
Cash App remained the largest contributor to the segment, generating $1.81 billion of the Bitcoin ecosystem’s revenue.
Bitcoin Holdings Decline in Value
Like several companies with large Bitcoin treasuries, Block also recorded an $88.5 million unrealized loss on its Bitcoin holdings during the quarter due to lower market prices.
A year earlier, the company had reported an unrealized gain of $212.2 million.
As of May 8, Block held 9,032 BTC, an increase of approximately 35 Bitcoin from the end of the previous quarter. At current market prices, those holdings are valued at more than $586 million.
Core Business Continues to Grow
Outside of its Bitcoin operations, Block delivered stronger results across its broader payments business.
Total gross profit increased 25% year over year to $3.17 billion, while Cash App gross profit rose 31% to $1.97 billion. Meanwhile, Square generated $1.16 billion in gross profit, representing 13% annual growth.
The stronger overall performance led Block to raise its full-year gross profit forecast to $12.51 billion, which would represent approximately 21% annual growth.
Stablecoins Become a Bigger Focus
During the quarter, Block also expanded its cryptocurrency offerings by introducing USDC support within Cash App.
The new feature allows users to send and receive the dollar-backed stablecoin across multiple blockchain networks, signaling the company’s continued investment in digital asset infrastructure beyond Bitcoin trading.
Although investors initially welcomed the earnings report, Block shares reversed early gains and traded lower after markets digested the decline in Bitcoin profitability.
