Block reported a gross profit of $2.29 billion for Q1, an increase from last year. CEO Jack Dorsey highlighted the Proto Bitcoin chip as a strategic move to reduce tariff vulnerability, with production based in the U.S. Despite strong core business results, the company lowered its full-year profit outlook due to economic uncertainties. Bitcoin and Ethereum trading updates are also included.
In its first quarter, Block announced a robust gross profit of approximately $2.3 billion, which highlights a 9% rise from the previous year. Central to its strategy is the new Proto Bitcoin chip, aimed for release later this year. With increasing tariff risks from ongoing trade tensions, especially under the Trump administration, Block is focusing on domestic production to mitigate potential impacts, possibly steering clear of the volatile international supply chain.
CEO Jack Dorsey emphasised that collaborating closely with U.S. manufacturers will provide an advantage as the company develops the Proto chip. He stated, \”We’re building in the United States.\” With tariffs on Chinese mining equipment potentially soaring to 150%, this strategy might help Block and its clients save substantially. The Proto chip is aimed not only at industrial miners but also at hobbyists, which aligns with Dorsey’s vision of accessibility for the broader community.
The Proto seeks to compete against established players like Bitmain and MicroBT, offering a more adaptable, open-source solution tailored from community feedback. This versatility marks a shift from the typical products offered by larger competitors, catering to a wider audience.
On top of its efforts in hardware, Block’s core operations are thriving. The Cash App noted a 10% growth in gross profit, amassing $1.38 billion, while Square recorded a 9% increase, totalling $898 million. Impressively, adjusted operating income reached a record-breaking $466 million, reflecting a 28% year-on-year spike. Given the fluctuating economic landscape and cautious consumer behaviour, however, the company has revised its full-year profit expectations downwards.
Block now anticipates $9.96 billion in gross profit for 2025, signalling a 12% increase from last year, despite the current economic volatility and weak consumer spending trends seen in the first quarter.
On the cryptocurrency scene, Bitcoin has seen a 1.3% increase in the last 24 hours, reaching $96,675, while Ethereum has edged up 0.1% to $1,825.
In related news, Robinhood aims to diversify its revenue streams away from cryptocurrency, following a significant 30% revenue decline. Meanwhile, discussions continue about the ongoing feud between factions over a cryptocurrency market structure bill. Additionally, the bullish outlook on Ethereum has caught the attention of market analysts, while Revolut has expressed a mixed response regarding new UK crypto regulations, which they describe as ‘onerous’.
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