Bitcoin News Today: Block Joins S&P 500 Shares Jump 7% as Profitability Hurdles Loom

Block Inc., Jack Dorsey’s digital finance firm, has joined the S&P 500 index, marking a pivotal moment for its ambitious vision of mainstream adoption in the fintech and cryptocurrency sectors. The inclusion, effective July 15, 2025, places the company under heightened scrutiny from Wall Street, as it seeks to convert its user-centric platforms—Cash App and Square—into scalable, profit-driven engines while navigating competitive pressures in Bitcoin mining [1].

The move triggered immediate market reactions, with Block’s shares rising 7% in the days following the announcement. This rally partially offset a 22% decline earlier in the year, though analysts caution that index inclusion alone won’t shield the company from ongoing profitability challenges. “The addition was helpful from a timing perspective,” said Mark Palmer of The Benchmark Company, “but sustainability hinges on execution” [1].

Block’s core strategy revolves around monetizing its 57 million active Cash App users, transitioning the app into a full-service banking platform, and expanding Square’s offerings for small businesses. However, competition from services like PayPal’s Venmo and Chime Financial looms large. Cash App’s average revenue per user ($110) lags behind Chime’s ($245), highlighting untapped potential for growth [1]. Meanwhile, Square’s push into higher-margin products faces rivals like Fiserv and Toast, complicating its path to market differentiation.

The company’s Bitcoin ambitions, once dismissed by markets, are gaining renewed attention. Block has accumulated 8,584 Bitcoin in its corporate treasury, valued at over $1 billion, and allocates 10% of Bitcoin product gross profit monthly to further purchases—a policy rare among public companies [1]. Dorsey’s early adoption of fractional Bitcoin trading on Cash App has cemented his reputation as a crypto advocate, yet investors remain skeptical of how these holdings translate to shareholder value.

Critics argue that Block’s index inclusion reflects broader speculative trends rather than a vote of confidence in its fundamentals. Transaction-based revenue models face volatility as payment volumes fluctuate and regulatory pressures mount. “Bitcoin initiatives are somewhat discounted by most investors,” noted Adam Frisch of Evercore ISI, emphasizing that markets currently prioritize core business performance over crypto-related bets [1].

On the hardware front, Block aims to challenge China’s dominance in Bitcoin mining through its Proto division, with plans to launch proprietary mining chips by mid-2025. Dorsey has highlighted a robust pipeline of customers, from large industrial operators to niche miners, but profitability in mining remains elusive due to rising network difficulty and energy costs. “Unfortunately, there are a great many like-minded investors, and that’s been the real trouble from a profitability standpoint,” said Benchmark’s Palmer [1].

As Block navigates its new S&P 500 status, the pressure to balance innovation with financial discipline intensifies. For Dorsey, the index inclusion is both a validation of his long-term vision and a test of his ability to deliver results. While the company’s Bitcoin strategy and infrastructure projects signal bold ambition, investor confidence hinges on the success of its foundational businesses.

Source: [1] [Jack Dorsey’s Mainstream Dream Faces Test as Block Joins S&P 500] (https://fortune.com/crypto/2025/07/23/jack-dorsey-block-square-sp-500-index-fund/)