Holding Bitcoin Paid Block 4x More Than Selling It to Cash App Users

Jack Dorsey’s Block booked a $229.7 million achieve on its Bitcoin (BTC) holdings within the third quarter. That achieve was greater than 4 instances the $52 million gross revenue its Bitcoin enterprise earned.

Block inventory rose 5.84% to $80.44 in after-hours buying and selling on November 3, from a $76.00 shut. The firm topped its personal steering, and funds and lending delivered all of its gross revenue development.

Borrowers and Card Spenders Carried Block’s Quarter

Block’s gross revenue grew 22% 12 months over 12 months to $3.24 billion, its shareholder letter reveals. Cash App delivered $2.07 billion of that whole, up 27%.

• Financial Solutions, which incorporates Cash App Borrow loans, added probably the most new gross revenue. It rose 32% to $1.33 billion, led by Cash App lending.
• Cash App client mortgage originations, which embody Borrow and Afterpay, grew 40% to $19 billion.
• Commerce Enablement, which incorporates Square payments and Cash App Card spending, stayed the most important revenue pool. Its gross revenue rose 19% to $1.85 billion.

Bitcoin was the one class that shrank. Its gross revenue fell 50% to $52 million from $104 million a 12 months earlier. Block tied the drop primarily to a price reduce on sure Cash App Bitcoin transactions.

Customers nonetheless traded extra Bitcoin, Block’s quarterly filing reveals, however Block stored a smaller share of every greenback bought. Bitcoin’s gross margin slipped to about 2.9% from 5.1%. 

The cryptocurrency’s bigger impact confirmed up additional down the earnings assertion.

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Block’s Bitcoin Stash Still Swings Its Bottom Line

Block revalues the Bitcoin it holds for funding at market worth each quarter. Those worth adjustments stream into GAAP earnings as remeasurement gains or losses.

Block held about 9,237 BTC for funding on September 30, price $771.9 million. The third-quarter remeasurement achieve reached $229.7 million, up from $59.6 million a 12 months earlier.

That achieve equaled about 38% of Block’s $612.5 million pre-tax earnings. It helped elevate GAAP web earnings to $566 million from $462 million.

The similar line had reduce the opposite method for 3 straight quarters. Block booked a $234.3 million loss within the fourth quarter of 2025. A $172.8 million loss adopted within the first quarter of 2026, chopping $0.29 from diluted EPS on a pre-tax foundation.

The second quarter added an $88.5 million loss. Even after the third-quarter achieve, the road nonetheless reveals a $31.6 million loss for the primary 9 months of 2026.

Block strips these swings out of adjusted EPS, which rose 109% to a document $1.13.

Bitcoin traded at $76,632 at press time, per BeInCrypto Markets. If Bitcoin ends December beneath its September 30 worth, Block will e book a fourth-quarter remeasurement loss. Block stories these results on February 24, 2027.

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