According to WooFunai, Block (SQ.US), led by Jack Dorsey, revealed in its latest financial report that its core payment application, CashApp, caused the gross profit of the Bitcoin business to drop 31% year over year due to actively lowering processing fees. This data reveals the company's trade-off between expanding its crypto business and optimizing the user experience, and also marks a new adjustment cycle for its digital asset strategy.
Analyzing the digital asset sector in depth, in the second quarter of 2026 (that is, April to June 2026), the sector's revenue was US$1.89 billion, down 13% from US$2.17 billion in the same period last year, but rebounded 5% from the previous quarter. According to data compiled by WooFunai, the sector's gross profit was reduced from US$105 million to US$72 million, mainly due to rate adjustments and a slowdown in global cryptocurrency trading volume in 2026. Among them, CashApp contributed $1.81 billion in Bitcoin-related revenue. On the balance sheet side, Block recorded an unrealized loss of US$88.5 million due to fluctuations in the valuation of assets held by the US Treasury, compared with unrealized gains of US$212.2 million in the same period last year. As of May 8, 2026, the company held 9,032 BTC, an increase of 35 from 8,997 at the end of the first quarter, with a total value of over US$586 million at market price. Consolidated net income fell from $538 million to $89 million due to adjustments in accounting treatment.
Despite pressure on the crypto business, the company's overall financial performance remains strong. Block's overall gross profit increased 25% year over year to US$3.17 billion, of which CashApp's gross profit increased 31% to US$1.97 billion and Square's gross profit increased 13% to US$1.16 billion. Based on this, management raised its gross profit forecast for the full fiscal year 2026 to US$12.51 billion, and the revenue growth rate is expected to reach 21%.
Furthermore, Block has completed USDC integration, and users can use stablecoins issued by Circle on multiple chains. After the financial report was released, the stock price first rose 4.5% and then fell 2% after the market closed at around $84.20. The market reaction was mixed.
As the regulatory environment becomes more complex, Block is about to submit audited financial statements for the third quarter of 2026 to the U.S. Securities and Exchange Commission. This move is not only a verification of short-term performance, but also a critical test of the resilience of its long-term compliance framework and digital asset strategy. Investors need to pay close attention to the details of subsequent disclosures to assess their true profitability amidst the fluctuation of the crypto cycle.