Block Inc. (formerly Square, ticker XYZ) is a next-generation fintech platform that combines several areas: Square (POS solutions), Cash App (transfers, savings, Bitcoin), as well as projects like Tidal and crypto infrastructure. The company actively promotes Bitcoin — both on the balance sheet and in its products.
💼 Main areas:
1. Square — business solutions
• Q1 2024: $50.5 billion in transactions (+9% y/y)
• Growth in banking service revenue: +36% y/y
2. Cash App — finance and crypto
• Gross profit Q1 2024: $1.26 billion (+25%)
• 24 million card users (+16%)
• Support for Bitcoin, BNPL, stocks
3. Bitcoin and infrastructure
• Balance: $573 million in BTC (growth ~160%)
• 10% of profits from BTC products reinvested in Bitcoin
• Development of Bitkey (wallet) and Proto (mining)
📌 Strengths of Block:
• Diversification: Square + Cash App + crypto
• Double-digit growth in key areas
• Bitcoin integration: into POS, into Cash App, into the ecosystem
• Focus on AI, banking products, tools for small businesses
⚡ Crypto integration:
• Cash App allows direct purchase/spending of BTC
• Square integrates the Lightning Network into POS
• Creating a full cycle: wallet → purchase → spending → mining
📊 Financial indicators:
Q1 2024:
• Gross profit: $2.09 billion (+22%)
• Cash App: $1.26 billion, Square: $0.82 billion
• 2024 forecast: $8.78 billion profit
Q1 2025:
• Revenue: $5.77 billion (below expectations)
• EPS: $0.56 vs. forecast $0.98
• Stocks fell by ~19%, but profit rose to $2.29 billion (+9%)
📌 Metrics:
• GPV: $50.5 billion
• Cash App Card: 24 million users
• Growth in Cash App Pay volume: +40% q/q
• BTC investments: $573 million
• Beta: ~2.8 (high volatility)
• P/E: ~13
• Stock price: $99 → $46 (2025)
🚀 Advantages:
• Bitcoin ecosystem under Block's control
• Unique combination of fintech and crypto
• History of growth and innovation
• Emphasis on AI, automation, customer retention
• Institutional trust (NYSE)
⚠️ Risks:
• Weak data Q1 2025
• BTC volatility affects market capitalization
• Regulatory threats (KYC, AML, SEC)
• Competition: PayPal, Visa, Stripe
• Technical analysis: RSI — oversold zone
📉 Technical analysis:
• Peak $99 (December 2024) → $46.5 (after Q1 2025)
• RSI = low, oversold zone
• Support: $46–50, resistance: $60–65
• Potential for a rebound, but the market is cautious
🧭 Conclusion:
Block Inc. is a fintech hybrid with a crypto core. Strong metrics, a crypto-oriented strategy, and growth in 2024 make the stock interesting. However, weakness in Q1 2025 and high volatility require caution. The idea suits those looking for crypto exposure in stocks, but it is important to consider all risks and market dynamics.
📚 Information sources:
• Block Inc. report for Q1 2024 and Q1 2025 (Investor Relations – Block Inc.)
• Interview with CEO Jack Dorsey and his statements about Bitcoin (Bloomberg, CNBC)
• Financial metrics and quotes (Yahoo Finance, MarketWatch)
• Analysis of the company's cryptocurrency investments (Bitcoin Magazine, CoinDesk)
• Technical analysis and evaluation of RSI, P/E (TradingView, Finviz)
• Data on Cash App and Square (Business of Apps, Statista)
• Press releases about the launch of Bitkey and Proto (Block Blog)
