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 $80.44 in after-hours trading on November 3, from a $76.00 close. The company topped its own guidance, and payments and lending delivered all of its gross profit growth.

Borrowers and Card Spenders Carried Block’s Quarter

Block’s gross profit grew 22% year over year to $3.24 billion, its shareholder letter shows. Cash App delivered $2.07 billion of that total, up 27%.

• Financial Solutions, which includes Cash App Borrow loans, added the most new gross profit. It rose 32% to $1.33 billion, led by Cash App lending.
• Cash App consumer loan originations, which include Borrow and Afterpay, grew 40% to $19 billion.
• Commerce Enablement, which includes Square payments and Cash App Card spending, stayed the largest profit pool. Its gross profit rose 19% to $1.85 billion.

Bitcoin was the only category that shrank. Its gross profit fell 50% to $52 million from $104 million a year earlier. Block tied the drop mainly to a fee cut on certain Cash App Bitcoin transactions.

Customers still traded more Bitcoin, Block’s quarterly filing shows, but Block kept a smaller share of each dollar sold. Bitcoin’s gross margin slipped to about 2.9% from 5.1%. 

The cryptocurrency’s larger effect showed up further down the income statement.

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Block’s Bitcoin Stash Still Swings Its Bottom Line

Block revalues the Bitcoin it holds for investment at market price every quarter. Those price changes flow into GAAP earnings as remeasurement gains or losses.

Block held about 9,237 BTC for investment on September 30, worth $771.9 million. The third-quarter remeasurement gain reached $229.7 million, up from $59.6 million a year earlier.

That gain equaled about 38% of Block’s $612.5 million pre-tax income. It helped lift GAAP net income to $566 million from $462 million.

The same line had cut the other way for three straight quarters. Block booked a $234.3 million loss in the fourth quarter of 2025. A $172.8 million loss followed in the first quarter of 2026, cutting $0.29 from diluted EPS on a pre-tax basis.

The second quarter added an $88.5 million loss. Even after the third-quarter gain, the line still shows a $31.6 million loss for the first nine months of 2026.

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

Bitcoin traded at $76,632 at press time, per BeInCrypto Markets. If Bitcoin ends December below its September 30 price, Block will book a fourth-quarter remeasurement loss. Block reports those results on February 24, 2027.

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