Block’s total profits jumped 25%, masking a 31% profit drop inside its $1.8 billion Bitcoin arm
Block’s Bitcoin Ecosystem was the only business segment to shrink in Q2, with gross profit falling 31% year over year to $72 million, even as Block’s total gross profit rose 25% to $3.166 billion. Revenue for the Bitcoin segment declined about 13% to $1.894 billion, and implied gross margin narrowed to roughly 3.82% from 4.84%. Block said the decline reflected lower fees on certain Cash App bitcoin transactions and bitcoin trading dynamics, but it did not quantify each factor’s impact. Cash App had 59 million monthly transacting actives in June, but Block did not disclose bitcoin-specific user or transaction data, so it is unclear whether lower fees were offset by higher volume. Separately, Block recorded an $88.5 million bitcoin remeasurement loss versus a $212.2 million gain a year earlier; this was a balance-sheet fair-value effect, not part of Bitcoin Ecosystem operating profit.
