Block, led by Jack Dorsey, exceeded expectations in the second quarter, with its Bitcoin strategy continuing to advance.

Block Inc., led by Jack Dorsey, raised its full-year gross profit forecast for 2025 after exceeding expectations in Q2, mainly due to the rapid growth of Cash App's lending business and steady performance in payment volume. Square's merchant business continues to grow steadily and has made progress in Bitcoin mining chips and AI-driven operational efficiency. Despite uncertainties in the macroeconomic environment, the company remains optimistic and emphasizes that Bitcoin is at the core of its long-term strategy.

Cash App Lending Services Lead the Rise Block Inc. previously expected a gross profit of $9.96 billion in 2025, and strong second-quarter performance prompted the company to raise its full-year outlook. After the news was released, Block's stock price rose 8% in after-hours trading in New York. Cash App recorded a gross profit of $1.5 billion in this quarter, a year-on-year rise of 16%, exceeding analysts' expectations of $1.42 billion. The main drivers of the rise were the better-than-expected sales from the Borrow short-term lending service and the installment payment feature driven by card consumption. The monthly active users remain stable at around 57 million, and the company expects revenue rise not to rely on an increase in the number of users. Chief Financial Officer Amrita Ahuja stated that the acceleration of revenue in the second half of the year does not depend on the growth of active users.

Square merchant business and operational efficiency driven by dual engines Square, as the core business of Block aimed at merchants, continues to serve as the second growth engine. This business is known for its card terminals and POS systems commonly used by cafes, restaurants, beauty salons, and small retailers. In the second quarter, the Gross Payment Volume (GPV) rose 10% year-on-year to $64.25 billion, slightly below the market expectation of $66.33 billion, but analysts say this growth remains robust in an environment where consumer spending is tightening. Higher transaction volumes and widespread adoption of value-added services have led to a 11% year-on-year increase in Square's gross profit. Its "Buy Now, Pay Later" (BNPL) feature has rapidly grown among merchants and consumers, helping to boost sales and merchant customer retention. It is worth noting that Square has begun delivering Bitcoin mining chips to customers, which is one of its long-term strategies to lay out the cryptocurrency infrastructure market. With the increase in delivery volume, this portion of revenue is expected to scale more significantly within the year.

AI technology helps reduce costs and improve efficiency Block is increasing its investment in operational efficiency, with Square playing an important role in this. The company has deployed artificial intelligence tools in areas such as product development, fraud detection, and personalized merchant services, thereby reducing operational costs, and will use the saved funds for reinvestment to enhance profit margins. Bloomberg intelligence analysts point out that Square's three main growth drivers in the future include: increasing the transaction frequency of Cash App users, expanding the merchant base to larger enterprises and emerging markets, and optimizing operations to enhance profits while maintaining innovation. If the macro economy stabilizes and small business spending recovers, Block is expected to see greater growth potential in 2025.

Financial Performance and Market Confidence In the second quarter, Block achieved an adjusted net profit of $385 million (earnings per share of $0.62), up from $0.47 in the same period last year. Revenue reached $6.82 billion, in line with market expectations. Since joining the S&P 500 index in July, investor confidence in the company has significantly improved.

Jack Dorsey Reaffirms Bitcoin's Core Position CEO Jack Dorsey stated that stablecoins have a role in cross-border remittances, and if they become popular in the payment sector, Block would consider entering that market. However, he emphasized that Bitcoin remains the core strategy of the company, as it is a new monetary system with characteristics that stablecoins do not possess. Dorsey stated that the company's goal is to make Bitcoin the native currency of the internet and to be used for everyday payments. The strong performance this quarter highlights Block's leading position in the digital payment space, while the growth of Cash App lending and the expansion of the Square merchant base have laid the foundation for future development.

Conclusion Block Inc. showcases its competitive advantage in the digital payment and cryptocurrency sectors through its two major business engines, Cash App and Square, as well as its long-term strategic deployment in Bitcoin and AI applications. With the continuous expansion of the Bitcoin ecosystem and the development of emerging markets, Block is expected to maintain its growth momentum in the coming years.