Research · Sep 3, 2026
[XYZ] Block Inc. Thesis 2026: Cash App Re-Acceleration Tests Bitcoin Treasury and Banking Expansion
Block Inc. (NYSE: XYZ; rebranded from Square Inc. December 2021; ticker change Square→XYZ January 2025) FY2025 revenue ~$23-25B (+5-10%) with adj. EPS ~$3.10-3.40 reflecting continued post-2024 Cash App growth deceleration + selected Square merchant cycle weakness + selected Bitcoin treasury appreciation + selected Afterpay BNPL integration + selected post-2024 Cash App banking expansion under continued founder-CEO Jack Dorsey. Leading US fintech firm operating Cash App (peer-to-peer payments + banking + Bitcoin trading), Square (merchant payments + lending + Afterpay BNPL), Bitkey (selected Bitcoin self-custody hardware), and selected blockchain initiatives. Founded May 2009 by Jack Dorsey + Jim McKelvey in San Francisco California (Dorsey concurrent ex-Twitter co-founder + CEO until 2021; McKelvey selected post-Square various ventures); IPO November 2015 ~$243M raised at $9/share (selected ~80% first-day pop reflecting strong fintech demand; selected post-IPO ~50x+ stock appreciation through 2021 peak). Headquartered in San Francisco California; ~12,000+ employees globally with ~$23-25B revenue. Segments: Cash App (~$15B+ revenue ~60%+ — selected peer-to-peer payments + Cash App Card debit + Cash App Pay merchant + Bitcoin trading + ~57M monthly actives FY2025; selected gross profit ~$5-6B at ~33-40% take rate) + Square (~$8B+ ~30%+ — selected merchant payments + Square Capital lending + Afterpay BNPL acquired January 2022 $29B all-stock + selected international UK + Australia + Japan + Spain + Ireland) + Bitkey (selected Bitcoin self-custody hardware wallet launched 2024 $150 retail; selected ~50K+ units sold FY2025) + TIDAL (~$50M+ music streaming acquired 2021 ~$300M; selected post-2024 strategic review). ~$10B+ Bitcoin treasury (~8,000+ BTC accumulated Q4 2020-Q1 2021 ~$220M corporate cost basis; selected ~3-5x appreciation FY2025 mark at ~$90-100K BTC; selected unrealized gain treatment under recent FASB fair value accounting standard adopted 2024). Block Mining division (announced 2021; selected ~$200-400M FY2025 capital allocation developing custom Bitcoin mining infrastructure including selected ASIC chip development). CEO + Founder Jack Dorsey since founding May 2009 (~16-year tenure; selected concurrent Twitter co-founder + CEO 2007-2008 + 2015-November 2021 with Twitter exit to focus on Block; selected ~25-year tech career; founder Jim McKelvey serves as board director). Selected dual-class share structure (Class A 1 vote + Class B 10 votes; Dorsey ~14% economic + ~25% voting control; McKelvey selected ~5% economic). Key transactions: May 2009 founding + November 2015 IPO + 2021 Square→Block rebrand + January 2022 Afterpay $29B all-stock + 2021 TIDAL ~$300M + 2024 Bitkey launch + January 2025 ticker change Square→XYZ. Capital return: no dividend policy; buybacks $1-1.5B FY2025 (selected accelerated post-2024 deployment); investment-grade BB+ credit rating. FY2026 thesis: Cash App banking expansion + Bitcoin treasury optionality + Square Afterpay full integration + Block Mining/Bitkey strategic execution. Risks: Cash App MAU deceleration severe (Venmo + Apple Cash competitive substitution), Bitcoin price collapse, Square merchant cycle weakness continuation, regulatory intensity (banking + crypto + interchange).