Bitcoin News Today: Square's 8% Stock Surge Driven by Cash App Lending and Global Expansion

Block Inc., guided by the strategic vision of Jack Dorsey, has reported an impressive fiscal outlook that surpasses previous forecasts, propelled by the robust performance of its Cash App lending segment alongside resilient payment volumes. Formerly known as Square, the company has adjusted its gross profit expectations for the year upwards to $10.17 billion from the earlier prediction of $9.96 billion, highlighting the strength and scalability of its business model. This positive financial trajectory led to an approximate 8% rise in Block's share value during after-hours trading in New York—signaling robust investor confidence.

The organization aims to transcend traditional payment processing by evolving into a comprehensive financial ecosystem for both individual consumers and business clients. This transformation involves the integration of peer-to-peer payment capabilities, sophisticated commerce tools, expansive banking services, and innovative bitcoin functionalities across its Cash App and Square platforms. During the second-quarter 2025 earnings call, executives outlined the ambition of firmly positioning Block as an end-to-end hub for financial management—offering streamlined services to consumers and enabling sellers of varying sizes to operate with unprecedented efficiency. According to CEO Jack Dorsey, Block is "back on offense," showcasing double-digit gross profit growth with expanded margins and an upwardly revised annual forecast.

Square's notable achievements extend to its substantial gross payment volume (GPV), which ascended by 10% to reach $64.2 billion. A remarkable international expansion of 25% significantly outpaced the 7% domestic growth, marking Block's successful penetration into new markets. The company seeks to utilize its scale, speed, and sophisticated technology to integrate further into the daily financial activities of a diverse clientele, ranging from young Cash App users to medium-sized enterprises.

Block's consumer arm has evolved beyond mere peer-to-peer payments, with Cash App envisioned as a "financial operating system for the next generation," characterized by four integral components. These include a peer-to-peer network fostering community connectivity, commerce tools facilitating seamless transactions, banking functionalities supporting saving, borrowing, and investing efforts, and bitcoin capabilities transforming cryptocurrency into functional "everyday money." In the past year, Cash App processed an impressive $218 billion in peer-to-peer volume, underscoring its low-cost growth strategy where new users are onboarded organically through community ties, hence minimizing customer acquisition expenses compared to its competitors.

The company's commerce network, integrating Cash App Card, Cash App Pay, Cash App Business, and Afterpay, managed transactions amounting to $183 billion over the preceding 12 months—reflecting a 16% increase. Efforts to personalize Cash App Card offers are underway, including plans for an "auto-selection" feature to facilitate effortless consumer savings. On the buy now, pay later (BNPL) front, the company's gross merchandise value surged 17%, reaching $9.11 billion, buoyed by Pay-in-Four plans and new post-purchase options.

Banking activities have also witnessed robust growth, with active users reaching 8 million in June—a 16% year-over-year improvement. Cash App's short-term lending product, Borrow, saw a dramatic 95% increase in originations, equivalent to $18 billion on an annualized basis. The company has successfully maintained healthy margins even amidst this growth, evident of prudent underwriting practices scaling effectively without diminishing quality.

In the cryptocurrency sphere, Cash App users have transacted over $58 billion in bitcoin since inception. Recent operational enhancements include raised withdrawal limits, with forthcoming provisions allowing Square sellers to receive bitcoin payments that settle instantly in cryptocurrency or local currency. By the year's end, merchants will be able to accept bitcoin via Square hardware—a testament to Block's commitment to expanding payment options as a distinguishing feature.

In a concerted effort to deliver cohesive services, Block is streamlining functionality between Cash App and Square. Cash App Business users can now utilize Square's Tap to Pay on iPhone platform, bridging consumer engagement tools with merchant-facing solutions. Innovative products such as the Square Handheld, introduced in May, offer dynamic support to personnel across various sectors. Concurrently, Square AI has been integrated into the seller dashboard, powered by company data and a proprietary AI known as "goose," providing merchants unrivaled insights into sales trends and customer spending patterns through conversational interactions.

Targeting mid-market sellers, defined by annual GPV exceeding $500,000, Block recorded a 17% growth in volume year-over-year, with this segment comprising 44% of Square's GPV. The sales strategy is bolstered by a field team recruited late last year alongside a globally expanding telesales unit. However, ventures in Borrow, BNPL, and cryptocurrency payments are inherently linked to fluctuations in consumer credit cycles, regulatory developments, and volatile crypto environments. Any economic downturn impacting discretionary spending could adversely affect Square's GPV and Cash App inflows.

Should Block achieve its outlined goals, it won't merely conclude the fiscal period with improved quantitative outcomes. The company aims for deeper integration across its platforms, thereby reinforcing its influence over the monetary transactions of millions globally—a endeavor aligning with Block's overarching mission to redefine the landscape of modern finance.