Jack Dorsey’s company records a $173 million unrealized loss on its Bitcoin treasury, but raises 2026 forecasts following positive quarterly results.
Block Inc, the fintech company founded by Jack Dorsey, has released its first quarter 2026 results, reporting a Bitcoin revaluation loss of $173 million, tied to the fair value accounting of its BTC reserves. The loss contributed to an overall net loss attributable to common shareholders of $309 million for the quarter. Despite this, the company raised its full-year guidance, citing solid operational execution.
The Bitcoin loss is non-cash and unrealized in nature, reflecting the fair value measurement of the company’s Bitcoin treasury and customer reserves. In total, Block holds 28,355 BTC, worth approximately $2.2 billion. The adoption of fair value accounting standards exposes the balance sheets of companies with Bitcoin treasuries to quarterly fluctuations, as already seen in the case of Strategy and other players in the sector.
On the operational front, Block’s total gross profit grew 27% year over year to $2.91 billion. Cash App, the group’s primary consumer app and one of the leading retail Bitcoin purchase channels, recorded gross profit growth of 38% to $1.91 billion, driven by lending, banking, and commerce. However, Bitcoin’s contribution to Cash App was down 31% year over year, while Square recorded no significant movement in its own segment. Bitcoin-related revenues across the entire group reached approximately $28 million, largely offset by related costs, with the impact on gross profit described as negligible.
On an adjusted basis, operating income increased 56% to $728 million, bringing margins to a record level of 25% of gross profit. Adjusted earnings per share grew 52% to $0.85. In the earnings release, Block stated: “We are raising our annual guidance to reflect our strong execution and increased expectations for the remainder of the year”, pointing to gross profit growth of 19% for 2026 and adjusted diluted EPS growth of 62%.
The corporate context is relevant: in February 2026, during the previous earnings call, Block had announced a 40% reduction in its workforce. Since then, the XYZ stock (Block’s ticker) has gained approximately 25%.
