Block just proved you can take a 31% hit to your Bitcoin gross profit and still walk away looking pretty good. The fintech giant reported Q2 2026 earnings on August 5 that included record adjusted operating income and a raised full-year gross profit forecast of $12.51 billion, even as the crypto-specific line item took a noticeable dip.
The culprit behind the Bitcoin profit decline is straightforward: Block slashed fees in February 2026. Cash App eliminated fees on Bitcoin purchases exceeding $2,000 and on recurring automated buys.
The volume play is working
Cash App’s preliminary Bitcoin ecosystem revenue came in at $1.8 billion for Q2 2026, driven primarily by buy volume.
Meanwhile, overall Cash App gross profit surged 31% year-over-year in the same quarter. Block’s total gross profit grew 25% year-over-year across the business, which includes Square’s merchant services alongside Cash App’s consumer products.
