Block (SQ) and Coinbase delivered diverging first‑quarter reports, underscoring the uneven impact of crypto market volatility on major digital‑asset businesses. While Block lifted its full‑year profit forecast, Coinbase posted a second consecutive quarterly loss and signaled a strategic pivot.
Block surprised markets with a 27% year‑on‑year rise in gross profit to $2.91 billion, driven by a 38% surge in Cash App’s peer‑to‑peer payments and an 82% jump in consumer lending originations. The Jack Dorsey‑led firm raised its 2026 gross profit outlook to $12.33 billion, compared with a prior forecast of $12.20 billion, and saw adjusted operating income climb 56%. However, a $852 million restructuring charge tied to workforce cuts and a $172.8 million remeasurement loss on its bitcoin investment dragged the bottom line to a $308.7 million net loss. Bitcoin ecosystem revenue fell to $1.80 billion from $2.33 billion a year earlier, mirroring the token’s price slide during the quarter.
Coinbase, meanwhile, took a heavier blow. The exchange swung to a $394.1 million net loss as cryptocurrency market declines slashed trading volumes. Transaction revenue tumbled 40% to $756 million, while mark‑to‑market losses on its digital asset holdings reached $482 million. With bitcoin trading below $70,000 for much of the period—down from above $97,000 in January—the platform saw reduced retail activity. Subscription and services revenue dropped 14% to $584 million, though stablecoin‑related income grew 11% to $305 million, reflecting a push toward recurring revenue streams.
CEO Brian Armstrong signaled a long‑term shift away from reliance on spot trading, stating Coinbase is evolving into “a place where users can trade a wider range of asset classes, including derivatives, commodities, futures, and prediction market contracts.” The strategy aims to insulate the business from crypto market cycles. Shares of both companies moved after hours: Block rose 7% on its raised forecast, while Coinbase fell about 6% as investors digested the ongoing losses.
