Lower Cash App fees pressure Jack Dorsey's Bitcoin business

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Eugene Komchuk

06.08.2026

Lower Cash App fees pressure Jack Dorsey's Bitcoin business — Block’s Bitcoin business became less profitable

Fintech company Block, led by Jack Dorsey, reported a 31% year-over-year decline in gross profit from its Bitcoin business in the second quarter. One of the main reasons was a reduction in fees for certain Bitcoin transactions made through Cash App.

Revenue from the Bitcoin segment totaled $1.89 billion, down 13% from $2.17 billion a year earlier. However, the figure increased by 5% compared with the first quarter. The segment’s gross profit fell from $105 million to $72 million.

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Block attributed the negative performance to its “strategic decision” to lower fees on certain Bitcoin transactions through Cash App, as well as a slowdown in crypto trading activity throughout 2026.

Cash App accounted for $1.81 billion of the company’s quarterly Bitcoin revenue.

Block also recorded an unrealized loss of $88.5 million due to a decline in the value of its Bitcoin holdings. By comparison, the revaluation of the company’s crypto reserves generated a paper gain of $212.2 million a year earlier.

According to Bitcoin Treasuries, Block held 9,032 BTC in its corporate treasury as of May 8. This was approximately 35 BTC more than the 8,997 BTC disclosed at the end of the first quarter. The holdings are currently worth more than $586 million.

Block raises full-year outlook

Block reported net income of $89 million for the second quarter, compared with $538 million a year earlier. The sharp decline was primarily driven by unrealized losses related to the revaluation of its Bitcoin holdings.

The company’s total gross profit increased by 25% year over year to $3.17 billion. Cash App gross profit rose by 31% to $1.97 billion, while Square gross profit increased by 13% to $1.16 billion.

Following the release of its quarterly results, Block raised its full-year gross profit forecast to $12.51 billion. Reaching this target would represent growth of approximately 21% compared with the previous year.

The company also highlighted the launch of USDC support in Cash App. The new feature allows customers to conduct stablecoin transactions across multiple blockchains.

Block shares, trading under the ticker BXYZ, initially gained 4.5% after the close of the regular trading session but later reversed course. Following the earnings release, the stock was trading more than 2% lower at around $84.20.

What is Block known for?

Block is a U.S. fintech company founded in 2009 as Square by Jack Dorsey and entrepreneur Jim McKelvey. Dorsey is also known as one of the co-founders of the social media platform Twitter, which was later renamed X. In 2021, Square changed its corporate name to Block, reflecting the company’s expansion beyond payment acceptance solutions.

The company’s key products include the Square payment ecosystem for businesses, the Cash App financial platform, buy now, pay later service Afterpay, music streaming platform TIDAL, Bitcoin hardware wallet Bitkey, and Proto, a division that develops Bitcoin mining solutions. Cash App allows users to send and receive money, use a payment card, and buy and sell Bitcoin, while Square provides businesses with tools for accepting payments and managing their operations.

As a reminder, Cash App previously removed fees for large Bitcoin purchases.

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