Bitcoin News Today: Can Block Turn Bitcoin Into Everyday Money Amid Financial Strain?

Block Inc. (NYSE: SQ), led by CEO Jack Dorsey, has activated Bitcoin (BTC) Lightning Network payments for over 4 million U.S. merchants via its Square platform, marking a significant expansion of cryptocurrency adoption in everyday commerce. The feature, announced in October and demonstrated at Washington D.C.'s Compass Coffee, allows sellers to accept BTC payments with instant settlement and zero fees until 2027, with a nominal 1% fee afterward Block Rolls Out Global Bitcoin Payments for Merchants. Merchants can also convert up to 50% of daily card sales into Bitcoin through a built-in "Conversion" tool Square Flips the Switch: 4 Million Merchants Can Now Accept Bitcoin Payments Instantly.

Dorsey highlighted the initiative during Block's third-quarter earnings call, expressing optimism about the rollout despite acknowledging the challenge of normalizing Bitcoin as a payment method. "We're looking for every opportunity to educate sellers and buyers on why accepting and using Bitcoin is the best option," he said, noting beta testers found the system "really easy" to use Block CEO Jack Dorsey Says Company Has 'A Lot Of Hope' From Upcoming Square Bitcoin Payment Rollout, But Notes This 'Challenge'. The move aligns with Block's broader strategy to position Bitcoin as "everyday money," leveraging its Cash App user base and Square's merchant network to drive utility Jack Dorsey's Block Enables Bitcoin Payments for Millions of Square Sellers.

The integration utilizes the Bitcoin Lightning Network, a layer-2 scaling solution that enables near-instant, low-cost transactions. Square's platform supports BTC-to-BTC, BTC-to-fiat, fiat-to-BTC, and fiat-to-fiat settlements, with merchants able to toggle the feature on via their Square Dashboard Square Flips the Switch: 4 Million Merchants Can Now Accept Bitcoin Payments Instantly. Transactions are irreversible, eliminating chargebacks-a pain point for small businesses-while auto-conversion options provide flexibility amid price volatility Block Enables Bitcoin Payments for Over 4 Million Square Merchants.

Financially, Block's Q3 results revealed mixed performance. While Square's gross payment volume rose 12% year-over-year, the company missed earnings and revenue estimates, reporting $0.54 per share on $6.11 billion in revenue versus expectations of $0.67 and $6.31 billion Block CEO Jack Dorsey Says Company Has 'A Lot Of Hope' From Upcoming Square Bitcoin Payment Rollout, But Notes This 'Challenge'. The earnings shortfall was attributed to a compressed profit margin stemming from revised processing agreements, which CFO Amrita Ahuja described as a "2.6 percentage point headwind" to Square's gross profit in Q3 Block shares tumble after Q3 Square volume-profit spread disappoints. Despite this, Block's Bitcoin segment generated $1.97 billion in revenue during the quarter, though it recorded a $59 million loss on its 8,780 BTC holdings Jack Dorsey’s 4 million+ Square merchants can now access Bitcoin payments.

The market reacted cautiously. Block shares fell 11.53% in pre-market trading following the earnings report, closing at $70.93-a nearly 8-month low Block CEO Jack Dorsey Says Company Has 'A Lot Of Hope' From Upcoming Square Bitcoin Payment Rollout, But Notes This 'Challenge'. Meanwhile, Bitcoin's price edged up 1.68% to $105,174.93 in the 24 hours post-announcement, as institutional demand and regulatory developments bolstered sentiment Jack Dorsey’s 4 million+ Square merchants can now access Bitcoin payments.

Critics and analysts remain divided. While some view the rollout as a "gamechanger" for Bitcoin's mainstream adoption, others question the sustainability of zero-fee incentives and the risks of regulatory scrutiny, particularly in states like New York, where the launch excludes sellers due to licensing complexities Square Flips the Switch: 4 Million Merchants Can Now Accept Bitcoin Payments Instantly. Citigroup analyst Bryan Keane noted the profit margin pressure was "anticipated" but emphasized Block's long-term guidance and "rule of 40" strategy as positives Block shares tumble after Q3 Square volume-profit spread disappoints.

Block's foray into Bitcoin infrastructure includes hardware wallets like BitKey and a native BTC wallet for sellers, reflecting Dorsey's vision of financial "freedom" through open systems. With Square now processing millions of Bitcoin transactions, the company's success in converting merchant skepticism into adoption will be pivotal for both its financial health and the cryptocurrency's trajectory as a global payment tool.