Block Prepares Bitcoin Payments Across Platforms Amid Earnings Slump

Block, the financial technology company co-founded by Jack Dorsey, is on the verge of accepting Bitcoin as a payment method across its various offerings. In a recent interview, Dorsey emphasized that Bitcoin would have "failed" if it were only used as a store of value, highlighting the importance of using it for everyday payments. He confirmed that Block is actively working to enable Bitcoin transactions on both its Square terminals and Bitkey wallet.

Critics have argued that the rollout has taken too long, but Dorsey reassured that the process is complex and that plans are in motion. Some skeptics have noted that Dorsey has been discussing this for years, referencing his past comments. Block, formerly known as Square, offers a range of consumer and business tools designed to simplify finance. Its flagship product, Square, helps merchants accept payments, manage inventory, and run operations. As of 2024, Block had an estimated user base of 4 million sellers, processing around $228 billion annually. If Square begins accepting Bitcoin payments across its merchant network, it could mark one of the biggest steps toward the mainstream adoption of the cryptocurrency.

With millions of sellers already using the platform, enabling BTC transactions could instantly introduce Bitcoin as a practical payment option in everyday commerce. Furthermore, it could also encourage some of its competitors in the payments space to explore similar integrations. Another key piece of Block’s Bitcoin push is Bitkey, a self-custody hardware wallet launched in December 2023. It’s designed to give users secure, independent control of their Bitcoin holdings without relying on exchanges or custodians. Dorsey confirmed that Bitkey, too, will support Bitcoin payments once integration is complete.

On the consumer side, Block’s Cash App is already a major on-ramp for Bitcoin purchases. It allows users to buy, sell, and transfer Bitcoin, and in Q4 2023 alone, it generated $66 million in profit from BTC-related activity. Beyond payments, Block is heavily invested in Bitcoin infrastructure. The company holds 8,485 BTC worth over $700 million and is building a full Bitcoin mining system. It recently developed an advanced 3nm mining chip and is now focused on bringing a complete mining solution to market, combining its strengths in hardware, software, and supply chain management.

To prioritize Bitcoin-related initiatives, Block has scaled back other ventures like the music streaming platform Tidal and its decentralized web project TBD. Square previously experimented with letting merchants accept Bitcoin back in 2014, but the feature was eventually discontinued. In a 2018 interview, Jack Dorsey explained that most of Square’s users at the time were small businesses selling “candles and bikes,” and customers simply weren’t ready to make those kinds of everyday purchases with Bitcoin.

Block’s plans to roll out Bitcoin as a payment method could be delayed as the company recently reported weak Q4 earnings and laid off over 930 employees. The layoffs, which affected around 8% of its workforce, came just weeks after Block missed Wall Street expectations, reporting revenue of $6.03 billion against a projected $6.29 billion and earnings per share of 71 cents instead of the expected 87 cents. In public comments, Dorsey has claimed that staff cuts were part of a broader restructuring aimed at aligning with strategic priorities and streamlining operations.