Jack Dorsey’s Block Takes $173M Bitcoin Hit as BTC Holdings Reach $2.2B

Block Inc. absorbed a $173M bitcoin hit while Cash App growth and margins continued strengthening in Q1.

Bitcoin volatility weighed on Block Inc.’s quarterly results, even as the fintech firm posted strong growth across its broader business. A sharp accounting loss tied to its BTC holdings pushed the company deeper into the red during the first quarter of 2026. Still, rising gross profit and stronger guidance pointed to continued momentum across Cash App and its payments segment.

Block Reports Strong Profit Growth Despite $309M Quarterly Net Loss

Block recorded a $173 million bitcoin remeasurement loss during the first quarter, according to its latest investor presentation. Fair value accounting rules require the company to adjust the value of its bitcoin holdings based on market prices at the end of each reporting period.

Corporate bitcoin reserves and customer holdings totaled 28,355 BTC during the quarter, carrying an estimated value of roughly $2.2 billion. As bitcoin prices declined during the reporting period, the company recorded an unrealized loss on those holdings.

Consequently, net loss attributable to common stockholders reached $309 million in the first quarter. Despite that figure, several key operating metrics improved sharply from a year earlier.

Total gross profit climbed 27% year-over-year to $2.91 billion. Meanwhile, adjusted operating income surged 56% to $728 million, while operating margin reached an all-time high of 25% of gross profit. Adjusted earnings per share also rose 52% to $0.85.

Bitcoin Trading Slows on Cash App as Core Services Continue Growing

Cash App remained the company’s strongest growth driver during the quarter. Gross profit from the segment increased 38% to $1.91 billion, supported by gains in banking, lending, and commerce services.

According to the release, Primary Banking Actives on Cash App grew 18% year-over-year to 9.7 million users as of March. Commerce Enablement payment volume growth also accelerated to 18% during the quarter, reflecting stronger customer activity across the platform.

However, bitcoin-related revenue inside Cash App declined 31% from a year earlier as trading activity weakened. On the other hand, Block’s merchant payments division, Square, posted little movement in its bitcoin-related operations. 

Crypto activity contributed around $28 million in bitcoin revenue, though associated costs nearly matched that amount. The segment’s gross profit impact remained minimal.

Even so, Block raised its full-year outlook following the stronger quarter. Management now expects 19% gross profit growth and roughly 60% adjusted operating income growth during 2026.

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