Block’s Bitcoin Business Shrinks, but Cash App Keeps Profits Flowing
Jack Dorsey’s financial technology firm Block, Inc. has posted solid profits even as its once-booming Bitcoin division cooled off.
The company’s third-quarter filing showed a $461.5 million net profit on $6.11 billion in revenue, underscoring steady growth from its core payment products despite uneven crypto performance.
A Tale of Two Divisions
While Block’s overall profits grew, its two key engines told very different stories. The Cash App ecosystem continued to shine, delivering 24% year-over-year gross profit growth, while Square, its small-business payments platform, expanded a more modest 9%. Together, these figures lifted the company’s total gross profit by 18% compared with last year.
Yet the numbers weren’t enough to keep investors calm. Shares fell nearly 10% in after-hours trading, extending earlier declines that saw the stock close down 3.7% on Thursday. Analysts said the miss on several performance metrics may have weighed on market sentiment.
Analysts Split as Key Metrics Miss Targets
While revenue landed roughly in line with forecasts, Block’s profitability metrics disappointed. Its adjusted operating income reached $409 million, well below the $473 million that Wall Street had projected. Likewise, EBITDA — earnings before interest, taxes, depreciation, and amortization — rose just 3% to $833 million, short of expectations.
Analysts at Investor’s Business Daily suggested the softer margins reflected heavier investment in new product development and compliance infrastructure rather than a slowdown in user activity.
READ MORE: Wall Street Hedge Funds Quietly Move Deeper Into Crypto
Bitcoin Revenue Cools, Holdings Grow
Once the centerpiece of Dorsey’s vision for an open financial system, Bitcoin played a smaller role this quarter. Block’s Bitcoin-related revenue fell to $1.97 billion, a decline from $2.4 billion a year ago, though it remains the firm’s second-largest revenue source after subscriptions and services.
Costs tied to Bitcoin transactions were down as well, dropping to $1.89 billion. The company reported a $59 million paper loss on its crypto holdings during the quarter and $178 million year-to-date, reflecting the market’s pullback.
Still, Block appears undeterred. The company now holds 8,780 BTC, up from 8,485 BTC earlier in 2025, and has continued building tools for merchants to transact in Bitcoin.
New Bitcoin Services and Lingering Scrutiny
In October, Block introduced merchant wallets and new Bitcoin payment integrations, designed to make digital assets more practical for businesses already using Square and Cash App. The effort aligns with Dorsey’s long-standing belief that Bitcoin will eventually serve as a universal online currency.
Not everything this year has gone smoothly. Earlier, Block paid $40 million to settle a case with the New York Department of Financial Services, which had alleged deficiencies in anti–money laundering controls tied to its crypto operations. The company said it has strengthened compliance systems since the settlement.
Despite regulatory pressure and slower crypto earnings, Dorsey’s company remains one of the few major fintechs actively investing in Bitcoin infrastructure. Analysts say that dual approach — embracing both traditional payments and decentralized finance — could position Block as a long-term bridge between the two worlds, even if the near-term numbers look uneven.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
