Jack Dorsey's fintech firm Block Inc recorded a $173 million bitcoin remeasurement loss in the first quarter, contributing to its overall net loss attributable to common stockholders of $309 million in the first quarter of 2026, according to its investor presentation. 

The measurement reflects the fair value accounting for Block's (XYZ) corporate Bitcoin treasury and customer bitcoin (BTC) holdings, which together stand at 28,355 BTC, valued at roughly $2.2 billion.

Despite this non-cash, unrealized loss, Block reported solid first-quarter 2026 results, with total gross profit climbing 27% year-over-year to $2.91 billion.

Cash App, Block’s consumer fintech app and primary bitcoin onramps, saw 38% gross profit growth to $1.91 billion. This was driven by increases in Cash App's lending, banking, and commerce businesses. Bitcoin contributed to Cash App’s growth, but was actually down 31% year-over-year.

Meanwhile, Square saw virtually no meaningful movement or activity in its bitcoin business. Crypto contributed about $28 million in bitcoin-related revenue during the quarter, offset by roughly equivalent costs, resulting in a negligible gross profit impact.

On an adjusted basis, Block’s operating income surged 56% to $728 million, expanding margins to a record 25% of gross profit. Adjusted EPS rose 52% to $0.85.

"We are raising our full-year guidance to reflect our strong execution and increased expectations for the remainder of the year," Block noted, indicating it expects year-over-year gross profit growth of 19% in 2026, along with adjusted diluted EPS growth of 62%.

Block cut 40% of its workforce during its last earnings print back in February, and XYZ shares have since risen approximately 25%.