Block’s Bitcoin Revenue Hits $2B Despite Stock Slide — What Investors Should Know

Sean Williams
Bitcoin

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  • Cash App drives 24% YoY growth; Square rises 9%.
  • Bitcoin revenue drops to $1.97B; BTC holdings see $59M negative remeasurement.
  • Shares fall post-earnings despite product expansion and merchant tools.

Block, Inc. (XYZ) reported mixed third-quarter results, showing strong growth in some segments while Bitcoin revenue slipped. Fintech heavyweight Jack Dorsey’s company posted earnings of $461.5 million on $6.11 billion in revenue, according to its SEC 10-Q filing. Despite hitting certain benchmarks, Block faced headwinds in key profitability metrics, impacting investor sentiment.

Cash App Drives Growth While Bitcoin Revenue Slows

Block’s Cash App continued to shine, with 24% year-over-year growth, contributing to an overall 18% rise in gross profit. Square’s core business also grew, albeit at a slower 9% pace. “We are encouraged by the performance across our platforms,” Dorsey noted in a shareholder letter.

However, Block’s bitcoin revenue fell to $1.97 billion, down from $2.4 billion in Q3 2024. While still the company’s second-largest revenue source after subscription and services-based revenue, the decline reflects both market volatility and strategic adjustments in the firm’s crypto operations.

Earnings and Market Reaction

Adjusted operating income came in at $409 million, missing analyst consensus of $473 million. EBITDA rose modestly by 3% to $833 million, slightly below the $840 million expectation. Shares of XYZ fell 3.7% during market hours to $70.94 and tumbled 9.6% to $64.10 after hours.

Block’s bitcoin holdings, totaling over $1 billion, saw a negative remeasurement of $59 million in Q3, contributing to ongoing scrutiny of the company’s crypto exposure. The firm held 8,780 BTC at the end of September, up slightly from 8,485 BTC at the start of the year.

Also Read: Key Signs Bitcoin May Be Bottoming After ETF Inflows

New Bitcoin Tools and Regulatory Moves

Despite these challenges, Block is expanding its crypto ecosystem. In October, the company introduced new bitcoin payment tools and a merchant wallet for businesses, signaling continued commitment to digital assets. Earlier this year, Block settled with the New York Department of Financial Services for $40 million over alleged anti-money laundering lapses linked to its bitcoin operations.

Block’s Q3 earnings reflect a balancing act between steady Cash App growth and fluctuating bitcoin revenues. While investor reaction was negative, the company’s focus on product expansion and crypto infrastructure could shape its long-term trajectory.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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