Block, the financial technology company led by Jack Dorsey, reported a sharp decline in gross profit from its Bitcoin operations during the second quarter of 2026, even as the company's overall business delivered robust growth.

According to Block's quarterly results, gross profit from the Bitcoin Ecosystem segment fell 31% year-on-year to $72 million. Bitcoin revenue declined 13% to $1.89 billion. By contrast, total company gross profit rose 25% to $3.17 billion.

The Bitcoin business was the only one of Block's three main reporting segments to post a decline in gross profit. Commerce Enablement gross profit increased 18%, while Financial Solutions rose 43%.

Block attributed the weaker Bitcoin profitability partly to a strategic decision to lower fees on certain Cash App bitcoin transactions, as well as changes in bitcoin trading dynamics. The company did not quantify the individual contribution of each factor to the overall decline. The fee reduction comes amid intensifying competition among retail-focused crypto trading platforms, where players such as Coinbase and Robinhood have vied for users through lower-cost trading options.

The reduced profitability lowered the implied gross margin of the Bitcoin business to approximately 3.8%, down from roughly 4.8% a year earlier. This came despite Block reporting 59 million monthly transacting actives on Cash App in June 2026. The company did not disclose bitcoin-specific transaction volumes or customer numbers, making it difficult to assess whether increased user activity offset the impact of lower per-transaction fees.

Block also recorded an $88.5 million bitcoin remeasurement loss during the quarter, compared with a $212.2 million gain in the same period a year earlier. The remeasurement reflects changes in the fair value of bitcoin holdings on the company's balance sheet. Block has held bitcoin as a corporate treasury asset since 2020, when it purchased approximately 4,709 BTC, tying part of its financial results directly to bitcoin price movements.

The results underscore a growing divergence between Block's broader financial performance and its cryptocurrency operations. On the strength of the overall quarter — helped by Cash App growth, improved margins, and cost reductions — Block raised its full-year 2026 gross-profit forecast.

The company has also been expanding its digital asset strategy beyond bitcoin. Block recently began rolling out stablecoin payments functionality within Cash App, and earlier this year moved to embrace stablecoins more broadly. That shift aligns with a wider industry trend, as major payment and fintech firms have increasingly explored stablecoin-based settlement and payment rails.

Separately, one of the largest publicly traded bitcoin mining companies, MARA Holdings, reported over half a billion dollars in losses for Q2 2026.