WiremarketsDextape brief
Holding Bitcoin Paid Block 4x More Than Selling It to Cash App Users
Jack Dorsey’s Block booked a $229.7 million gain on its Bitcoin (BTC) holdings in the third quarter. That gain was more than 4 times the $52 million gross profit its Bitcoin business earned. Block stock rose 5.84% to $80.
Dextape brief
Jack Dorsey's Block reported that its Bitcoin holdings produced a $229.7 million gain in the third quarter, more than four times the $52 million gross profit from its Bitcoin business. According to the shareholder letter, total gross profit rose 22% year over year to $3.24 billion, with Cash App and lending driving most of the growth. Bitcoin was the only segment to shrink, with gross profit falling 50% to $52 million, which Block tied mainly to a fee reduction on certain Cash App Bitcoin transactions. Block revalues its roughly 9,237 BTC investment holdings at market price each quarter, with price swings hitting GAAP earnings; the third-quarter gain lifted net income to $566 million. Excluding those swings, adjusted EPS rose 109% to $1.13. Block's next results are scheduled for February 24, 2027.
Why it matters: It shows how a company's bitcoin holdings can swing reported earnings even as its core Bitcoin trading business shrinks.
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Terms in this story
- Block
- A batch of transactions added to a blockchain together.
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