In a surprising turn of events, BlackRock’s spot Bitcoin ETF has recorded its largest outflow, signaling potential shifts in market dynamics. This significant outflow highlights fluctuations in institutional interest amidst
BlackRock ended its spot Bitcoin ETF inflow streak with its largest outflow on record, nearly $12.7 million more than its previous biggest outflow day.
The post Why Is the Crypto Market Down Today? appeared first on Coinpedia Fintech News Crypto markets slid on Friday as fresh tariff concerns once again discouraged investors. Bitcoin is down over 2% today, trading at $103,700. Smart contract platforms also took a big hit as Solana fell 6.3%, Sui dropped 7.8%, and Avalanche slid 7.3%. Crypto stocks were also affected as Bitdeer (BTDR) sank 8.3% after a big rally, while MicroStrategy (MSTR) dipped 2.7% and Coinbase (COIN) lost 1.3%. U.S.-China Trade Tensions Startle Crypto Markets The rising U.S.-China tensions are back in focus after a brief truce earlier this month. President Trump accused China of violating the tariff agreement, while Treasury Secretary Scott Bessent said in a Fox interview that trade talks with Chinese representatives had “stalled.” In response, China called on the U.S. to “immediately correct its erroneous actions and cease discriminatory restrictions,” according to the BBC. Earlier, the easing of tensions had fueled a rally in risk assets like Bitcoin, but the renewed conflict could now erase those gains. Memecoins See Sharp Pullback Bitcoin has dropped 6% over the past week. Whale activity shows signs of a comeback, but technical signals are still flashing warning signs. A death cross also looms for Bitcoin, and if it falls below the $104,584 support, it could slide further toward $100,694. Bulls need to reclaim $106,726 to regain control and prevent deeper losses. Memecoins also saw a sharp pullback, with over $10 billion wiped from their market cap in just seven days. It dropped from $74 billion to $64 billion, which is the lowest since May 9. Over $11.4 billion in Bitcoin and Ethereum options were to expire yesterday, which had a major impact on their short-term price action. Open Interest Drops, Liquidations Hit $800M The Fear and Greed Index has also dropped from 74 to 69, a three-week low. Over 217,000 traders were liquidated recently, with over $800 million in total liquidations across the crypto market. Over the past 24 hours, there have been $716 million in total liquidations. Bitcoin futures saw a $3.7 billion drop in open interest as BTC fell from $108,000 to $104,500. This sharp pullback signals a healthy reset, clearing out overleveraged positions and cooling market hype. While Bitcoin could soon dip to $100,000, however, data shows that a drop below that level could be short-lived. CryptoQuant’s Net Realized Profit/Loss (NRPL) chart shows there is only mild profit-taking, which is far less than the sell-offs seen at market tops in 2024. This hints that the market isn’t overheated and Bitcoin’s uptrend may still have room to run. If Bitcoin drops below $100,000, the $96,000 would be a key support level attracting buyers and limiting further drops. Trader Altcoin Sherpa points to a strong support zone between $102K–$104.5K and expects a bounce that could push Bitcoin above $107K in the coming days.
BitcoinWorld AI Startups: Unlocking Future Innovation at Bitcoin World Sessions: AI In the rapidly evolving landscape of technology, the intersection of AI and blockchain holds immense potential. For those tracking breakthroughs in this space, understanding the practical applications and future direction of artificial intelligence is key. Bitcoin World Sessions: AI provided a dedicated platform to explore this convergence, shining a spotlight on the AI Innovation driven by leading partners and the startups they support. This high-energy event brought together founders, investors, and technologists to delve into how AI is reshaping industries. From initial concepts presented in a pitch deck to full-scale deployment, the discussions highlighted real-world impact. We were proud to feature insights from our partners, whose expertise offered attendees a direct view into the latest developments and strategies in AI. The Rise of AI Startups A significant theme explored was the transformative role of AI within new ventures. In the session “Your Next Co-Founder Will Be AI,” Tanka CEO Kisson Lin presented a compelling vision for AI Startups . Drawing from extensive experience at major tech companies and multiple entrepreneurial ventures, Lin discussed how AI can serve as a relentless co-founder. Key takeaways from this session included: AI handling crucial, time-consuming tasks like drafting product documentation and preparing investor updates. Enabling founders to scale their operations more quickly. Facilitating smarter workflows and reducing founder burnout. This perspective emphasizes how AI is moving beyond being just a tool to becoming an integral part of the founding team, fundamentally changing how AI Startups are built and scaled. Implementing Enterprise AI Solutions Moving from startups to established corporations, the event showcased practical applications of AI in large organizations. The session “How Toyota Repair Technicians Leverage AI with NLX” provided a concrete example of Enterprise AI in action. Kordel France from Toyota and Andrei Papancea from NLX shared their journey of taking an AI concept to a scaled deployment. They detailed how AI-powered conversational tools were implemented to provide Toyota technicians with instant access to complex repair data. This integration has led to: Increased technician productivity. Improved dealership efficiency. Smarter, faster workflows for accessing critical information. This case study demonstrated the tangible benefits that Enterprise AI can deliver when applied strategically to specific business challenges. Building with Generative AI Another area of significant interest was the development of applications using generative AI. The session “Building Richer and More Scalable GenAI Applications for Startups and Developers” featured Nipun Agarwal and Sandeep Agrawal discussing how MySQL HeatWave facilitates building powerful, scalable Generative AI applications. Their presentation highlighted how the platform streamlines complex RAG (Retrieval Augmented Generation) workflows through: A built-in vector store. In-database Large Language Models (LLMs). Integrated machine learning capabilities. This approach eliminates the need for separate databases or complex ETL processes, allowing developers to build faster, work with real-time data, and dedicate more time to innovation in the Generative AI space. Empowering Teams with AI Agents The concept of collaborative AI systems and agents was also a key focus. Iliana Quinonez, Director of Customer Engineering at Google Cloud Startups, presented “Democratizing AI and Building Collaborative Systems with AI Agents .” She explained how collaborative AI agents are transforming teamwork and boosting productivity across organizations. Key points included: Making AI agent development accessible to teams regardless of their technical experience. Building intelligent systems that can work seamlessly with both humans and other AI systems. Driving smarter, faster collaboration through empowered teams. This session underscored the potential for AI Agents to act as force multipliers, enhancing human capabilities and streamlining complex collaborative tasks. Integrating AI Across the Enterprise Suite Expanding on the theme of Enterprise AI , the session “Suite AI: How SAP Is Bringing AI to the Enterprise” explored SAP’s strategy for embedding AI across its business suite. Max McPhee and Rob Seifert detailed how innovations are driving efficiency and transforming operations within large companies. Highlights included: SAP’s AI agent, Joule, and its role in assisting users. Embedded intelligence within core SAP applications. Options for custom AI development to meet specific business needs. This provided insight into how major software providers are making Enterprise AI capabilities readily available to businesses of all sizes, facilitating widespread adoption and transformation. Experience the Future of AI Innovation Bitcoin World Sessions: AI offered a deep dive into the practical applications and future directions of AI, from supporting AI Startups to implementing complex Enterprise AI solutions and building with Generative AI and AI Agents . The insights shared by partners provided valuable perspectives on the state of AI Innovation today and where it is heading. The event itself was held on June 5, 2025, in Berkeley, CA, featuring leaders from companies like OpenAI, Anthropic, Khosla Ventures, and more. Attendees had the opportunity to gain expert insights, participate in workshops, and network with peers at the forefront of the AI revolution. To learn more about the latest AI market trends, explore our article on key developments shaping AI features. This post AI Startups: Unlocking Future Innovation at Bitcoin World Sessions: AI first appeared on BitcoinWorld and is written by Editorial Team
Solana (SOL) is experiencing significant bearish pressure as whale sell-offs intensify and liquidation events surge. Recent data indicates that the market sentiment has shifted, marked by a sharp decline in
BitcoinWorld AI Pace of Change: Unprecedented Speed Reshapes the Future For those tracking the pulse of technology, especially within the dynamic cryptocurrency space, it’s clear something is different. The AI pace of change feels unlike anything we’ve witnessed before – distinct from the shifts brought by mobile, social media, or cloud computing. This isn’t just a feeling; it’s a reality underscored by data. Venture capitalist Mary Meeker, renowned for her previous ‘Internet Trends’ reports, has released a new, extensive slideshow report titled “Trends — Artificial Intelligence.” Across its 340 pages, the word “unprecedented” appears 51 times, specifically used to describe the speed of AI’s development, adoption, investment, and usage. As Meeker writes, “The pace and scope of change related to the artificial intelligence technology evolution is indeed unprecedented, as supported by the data.” Understanding the Unprecedented AI Speed What exactly makes this wave of AI different? The data points highlighted in the Mary Meeker report paint a clear picture of acceleration. Here are some key indicators: User Adoption: Achieving 800 million users in just 17 months, as seen with platforms like ChatGPT, is a speed of consumer adoption never before recorded for a new technology. Company Growth: The rate at which new AI companies are reaching high annual recurring revenue (ARR) milestones is significantly faster than in previous tech cycles. Cost Reduction (Inference): The cost of using AI models (inference costs), calculated per 1 million tokens, has dropped dramatically by 99% over the past two years, according to research cited by Meeker. This rapid decrease makes AI more accessible and fuels wider adoption. Cost Increase (Training): While usage costs fall, the cost of training large AI models has surged, sometimes reaching up to $1 billion. This highlights the immense investment required at the foundational level of AI development. This combination of rapid user adoption and plunging usage costs, despite high training costs, creates a unique market dynamic. What’s Driving the AI Adoption Speed? Beyond user demand, several factors contribute to the astonishing AI adoption speed documented by Meeker. Competition is fierce, leading companies to quickly match and improve upon features offered by rivals, often at lower costs. The rise of open-source AI models, particularly from international players, further intensifies this competition and lowers barriers to entry. Hardware advancements are also playing a crucial role. Meeker points out significant efficiency gains in specialized AI chips. For example, Nvidia’s 2024 Blackwell GPU is vastly more energy-efficient per token than its 2014 predecessor. Companies like Google and Amazon are heavily investing in developing their own custom AI chips (TPUs and Trainium, respectively) at scale for their cloud infrastructure. These are not minor initiatives; they are described as “foundational bets” that enable faster and cheaper AI processing, directly impacting the pace of adoption. Exploring Key AI Technology Trends The report delves into several critical AI technology trends shaping the current landscape. The shift towards more efficient hardware, the increasing sophistication of models, and the proliferation of specialized AI applications are all contributing to this accelerated pace. The competition between proprietary models and open-source alternatives is also a significant trend, driving innovation and potentially lowering costs for end-users and businesses. While the technological progress is undeniable and happening at an unprecedented AI speed, the financial returns story is less clear-cut. Venture capital is flowing into AI companies rapidly, but these companies, along with cloud providers, are also incurring massive expenses due to the infrastructure demands of AI development and deployment. The significant investment required for computing power, data storage, and talent means that profitability for many remains a future goal. Benefits, Challenges, and the Path Ahead The rapid advancements and dropping inference costs are largely beneficial for consumers and enterprises. They gain access to increasingly powerful AI tools and services at more affordable rates, fostering innovation and efficiency across various sectors. This is a direct result of the intense competition and technological progress highlighted in the Mary Meeker report . However, the primary challenge remains identifying which companies will successfully navigate the high investment requirements and intense competition to become profitable, long-term leaders in the AI space. As Meeker aptly puts it, “Only time will tell which side of the money-making equation the current AI aspirants will land.” For individuals and businesses, the actionable insight is clear: stay informed and be prepared for continuous, rapid change. The AI revolution is not slowing down; understanding its drivers and implications is crucial for navigating the future landscape, whether you are involved in technology, finance, or any industry being reshaped by AI. In conclusion, Mary Meeker’s report confirms what many have sensed: the current era of AI development and adoption is truly unprecedented in its speed and scope. Driven by technological advancements, fierce competition, and massive investment, the AI pace of change is reshaping industries and presenting both incredible opportunities and significant challenges. It’s a time to pay close attention as this powerful technology continues its rapid evolution. To learn more about the latest AI technology trends, explore our article on key developments shaping AI features. This post AI Pace of Change: Unprecedented Speed Reshapes the Future first appeared on BitcoinWorld and is written by Editorial Team
Crypto researcher SMQKE has drawn attention to a newly surfaced insight from a Zumo report, identifying Ripple’s XRP token as a highly suitable candidate for wholesale applications within single-currency domestic zones. The assessment appears in Zumo’s publication, titled “Digital assets 2023: identifying the opportunities across the enterprise landscape.” It refers to the specific benefits of distributed ledger technology (DLT) in business-to-business (B2B) digital asset payments. Ripple’s XRP token—> “attractive for WHOLESALE applications in domestic/single-currency-zone contexts, where blockchain/DLT-derived advantages (cost/ speed/programmability/automated reconciliation) can potentially be realised without the awkwardness of the digital asset fiat… https://t.co/DDvBlO58Cb pic.twitter.com/PDa15AYV1N — SMQKE (@SMQKEDQG) May 28, 2025 Enterprise Friction in Crypto-to-Fiat Conversion The report makes the case that the inefficiencies and friction associated with converting cryptoassets into local fiat currencies remain a core challenge in early-stage enterprise adoption. The analysis specifically notes that many crypto-based payments currently require off-ramps back into fiat to complete transactions or satisfy regulatory, tax, and accounting requirements. This hinders their seamless integration into operational payment flows. Ripple and XRP Positioned for Domestic Optimization Zumo highlights several blockchain projects that aim to address these cost and conversion issues. Ripple is mentioned directly alongside Stellar in the context of working to reduce these frictions, with the report calling out XRP and its intermediary token role as part of this effort. In a key section, the authors write that the XRP token is “attractive for wholesale applications in domestic/single-currency-zone contexts, where blockchain/DLT-derived advantages (cost/speed/programmability/automated reconciliation) can potentially be realised without the awkwardness of the digital asset fiat bridge.” We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 This analysis suggests that XRP’s architecture and integration features make it particularly well-suited for domestic wholesale environments, where the need to convert between different fiat currencies is removed. Institutions can more directly benefit from blockchain’s technical efficiencies. Gradual Adoption Within Enterprise Financial Infrastructure The commentary aligns with Ripple’s long-standing positioning of XRP as a liquidity and settlement token for financial institutions and enterprises. By eliminating the need for complex cross-border fiat bridges in domestic contexts, XRP may offer banks and corporations a viable path to DLT integration without requiring full-scale disruption of existing fiat systems. This has implications for how enterprise-grade blockchain infrastructure may be deployed in the near term, focusing first on domestic efficiencies before scaling into more complex, cross-border models. CBDC Complexity Reinforces XRP’s Immediate Use Case The Zumo report also includes a statement from HSBC Managing Director Mark Williamson, reinforcing the broader challenges surrounding Central Bank Digital Currencies (CBDCs) and digital assets in cross-border use. Williamson emphasizes the need to solve what he calls the “CBDC Rubik’s cube,” encompassing wholesale and retail models, token- and account-based systems, as well as primary and secondary market integration. The inclusion of such commentary further contextualizes the digital asset landscape, within which XRP is positioned as a practical tool for enterprise-level financial applications. SMQKE’s tweet underscores growing institutional acknowledgment of XRP’s potential in practical, regulated settings. The recognition of XRP’s advantages—specifically cost reduction, speed, and programmability—adds to the token’s evolving narrative as a purpose-built settlement mechanism within tokenized finance frameworks. As enterprises continue to evaluate and adopt blockchain solutions, XRP’s utility in streamlined, domestic payment environments may become increasingly relevant. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Zumo Acknowledges XRP Powerful Use Cases As Bridge Currency appeared first on Times Tabloid .
The OCC calls for a major boost in financial literacy to navigate the explosive rise of digital assets, urging updated strategies to protect and inform new crypto investors. OCC Calls for Stronger Financial Literacy on Crypto The Office of the Comptroller of the Currency (OCC), the federal agency responsible for overseeing national banks and federal
SOL faces growing bearish pressure as whales sell off and long liquidations surge.
Summary Block's post-earnings selloff was overdone - recent product launches and its bitcoin business justify the stock's rapid recovery. Square's new biannual product launch cadence, the first of which included Square Handheld and a Square AI teaser, positions the company to reignite Square segment growth. AI integration into Square POS leverages proprietary data and distribution, offering robust upselling potential and should drive strong future subscription and services revenue. Block is among the best bitcoin businesses available on public markets, with a full-stack approach and the ability to deploy bitcoin services into enormous ecosystems of merchants and consumers. Further, the company earns a very lucrative yield on its Lightning channel, which is seeing booming growth. Block is at a crossroads; it has faced several years of multiple compression and poor stock performance, but recently has inflected EPS and is looking to re-accelerate Square and Cash App growth. Now, execution is everything. Just a few short weeks ago, I wrote one of the most uncomfortable articles in my time writing here for Seeking Alpha. Jack Dorsey's Block ( XYZ ) reported objectively bad earnings, with slowing growth and meager guidance. The stock got decimated. It dropped from 20% from around $60 to $45 upon release. Block is personally my top holding and a stock I have written on several times with consistently bullish stances. Watching this stock underperform high-flying AI names and fintech competitors alike for the past few years has been a challenge, to say the least. Even worse, I have been recommending others to buy the stock, just to watch it consistently underperform. My conviction was shaken for the first time after seeing the market response to the recent earnings. But I read through the report with an open mind. What I saw didn't justify a 20% selloff. I began writing. The article was titled 'Don't Let This Selloff Go To Waste' and I rated XYZ a strong buy. It felt horrible at the moment, but I had to stomach that discomfort. Since then, the stock has returned to its pre-earnings level above $60. I didn't expect such a rapid recovery, but there are very clear reasons for such. Since the earnings report, the company has announced significant product launches, management has been far more engaged with retail, and there's been a major step toward the company's bitcoin (BTC-USD) inflection. The company is showing renewed focus on innovation and product velocity. The thesis underpinning my Strong Buy rating in this article is simple: Block will reaccelerate growth through product stack depth, innovation, and solid execution. I typically wouldn't cover a stock again so soon, but there's much to talk about here. Let's dive right in. Square Releases The recovery began with the company's first Square Releases, a new biannual product launch cadence for Square merchants. The first Releases announcement was on May 13th, which coincided with the J.P. Morgan 53rd Annual Technology, Media and Communications Conference. Both CEO Jack Dorsey and CFO Amrita Ahuja presented at the conference. I have a detailed writeup of the conference on my X account . The core takeaways from their talk were: Four key priorities for the rest of the year: expand Cash App Borrow ramp Afterpay on Cash App card market share gains in square and re-acceleration of GPV growth launch of Proto, the Bitcoin mining ASIC business. Expansion of Cash App Borrow is not predicated on an expansion of risk appetite. It’s based on the improved unit economics by switching to SFS (Square Financial Services) for origination & the improved profitability thereof. They can now profitably lend to more users. Acceleration of Square GPV growth will be driven by a revamp of marketing strategy. Currently, 80% of Square customer acquisition is organic/self-serve. The company wants a 50/50 balance between self-serve and internal sales led/partnership driven. Meaning, the sales approach has changed to favor more outbound, free hardware, and contract-driven sales. This approach is what allowed competitors to gain share vs Square in recent years. The shift to field sales has resulted in positive early signs with larger customer wins. Cash App gross profit accelerated in April vs to the March run rate, which now makes the company's poor Q2 guide look "uncharacteristically conservative" since it assumed a weakening consumer. Such weakening has not materialized through April and May. The goal of codename: goose is to have a fully autonomous AI agent that can act as a CFO or COO for Square merchants and a personal financial assistant in Cash App. Product velocity and innovation are what will regain shareholder trust, belief, and enthusiasm Both Dorsey and Ahuja expressed far more optimism during the investor conference compared to the earnings call. The stock climbed from $55 to $58 on that day. On the morning of the conference, the company announced one huge product release and one huge teaser: Square Handheld and Square AI. Square Handheld is the best-in-class portable point-of-sale ("POS") system currently available. It is the thinnest, lightest, has the best camera, offers the most payment methods, can process payments offline, and is very cost competitive. X.com user @nachunja A handheld POS is important for retail stores, restaurants, and any other business where it's advantageous for customers to check out at a non-fixed location. This product launch, alongside the company's revamped marketing strategy, aims to reaccelerate Square GPV growth. I believe it's a winning equation. Square Handheld was the flagship launch of the first Square Releases, but this also came with a host of other updates for each of the company's specific verticals (Food & Beverage, Retail, Services, and Health & Beauty). The most important software update was the launch of a new Square POS unified software interface . It enhances the cross-compatibility of Square software across different devices and is a critical step toward moving up the value chain from SMB's (small-to-medium business) to large enterprises. Finally, the company teased Square AI, an AI model that is native to the Square POS software. It's difficult to understate the opportunity that Square has here. I have consistently shared what, I believe, are the keys to success for AI companies: proprietary data and distribution capability. Square fits both of these very well. Data makes the AI smart and useful, and distribution makes the economics work. Integrating AI into the Square software stack moves it up the value chain once again: it started as a simple way to accept card payments, then became a POS solution for merchants, and then a full-stack ERP platform. Square AI will make it a full-stack business operating system. This is an incredibly robust value proposition for existing merchants and should also attract new merchants quite well. On the distribution front, it will be as simple as a software update. My assumption is that a base-level Square AI offering will be bundled into the Free plan with additional features available for both Plus and Premium plans. www.squareup.com This will help generate further subscription & services growth over time as AI has very clear upselling benefits for both existing and new merchants. In my recent article , I summarized my core long-term thesis as such: Meanwhile, the market is completely ignoring the ongoing profitability inflection Block is enjoying. The company demonstrated strong operating leverage in its subscription and services line item, growing revenue by over $200m YoY (+12.5% YoY) while segment COGS grew only 2%. Segment gross margin grew from 83.9% to 85.5% YoY. Segment contributions here grew YoY from both Square and Cash App, and I maintain the conviction that this line item is the future driver of Block's growth. It's the key to a sustainable profitability inflection for the company, and recent news regarding Cash App Borrow, discussed below, will begin driving strong operating leverage in this line item. The Cash App Borrow news referenced was that the company would begin originating Cash App Borrow loans internally within Square Financial Services, which has a US banking charter. This improves the unit economics of the segment and will generate further growth from the Cash App segment contribution. Square AI will accelerate subscription & services growth from the Square segment contribution. Combined with the company's renewed focus on outbound marketing and customer acquisition, I see a very clear path for Square to begin regaining market share and accelerating growth. Don't just take my word for it, though. Block CEO Jack Dorsey himself agreed with my take on X: x.com The seminal Square Releases Day was a great success and was met with excitement from the market. It encapsulates perfectly my thesis: execution excellence underpinned by deepening POS hardware offerings (deepening the product stack), enhancing software functionality (innovating UI/UX), and building hype for future product innovations with Square AI. This brings me to my next point: management engagement. Management Engagement I have been posting about Block for well over a year now on X but have never seen Jack Dorsey engage with the retail community as much as he has recently. It seems the response to the recent earnings call really did light a fire under him. Just look through his replies . He's been replying directly to retail analysts like myself that provide in-depth coverage of the company, its products, and its growth runway. X.com There are many such examples. Engaging with the retail community on X has become much more common in recent years, with many CEOs and other executives using it as a vehicle to communicate directly to a retail audience. Again, returning to my thesis: engagement with the retail community ensures investors understand the strategic direction the company is pursuing. It's not necessarily enough to launch innovative new products; you also need to market them well and ensure the market understands the innovation. The final component of the stock's recovery is Bitcoin. The company's full-stack bitcoin offerings are attracting more attention as the leading cryptocurrency hits new all-time highs and Bitcoiners gather at bitcoin 2025 . Block's Bitcoin Strategy Block has one of the most robust Bitcoin strategies of any publicly traded company. It offers products aimed at accelerating the adoption of bitcoin as a currency, the capability to buy bitcoin easily and hold it safely, and soon the ability to mine bitcoin. The company also has a Bitcoin treasury dollar-cost-averaging strategy. In other words, it holds bitcoin, allows users to buy bitcoin, is increasing access to bitcoin mining, offers cold storage capabilities, and supports the open-source development community. The biggest product announcement to date for Block's bitcoin strategy, however, came just recently on May 27th at the Bitcoin Conference. The company launched a pilot test allowing Square sellers to accept bitcoin as payment. It hopes to have this feature widely available by 2026. x.com These transactions will be processed on the Lightning Network , a payments protocol on the Bitcoin Blockchain that greatly improves processing time for transactions. Historically, a major criticism of bitcoin as a currency is that transactions take roughly 10 minutes to settle. This is due to the design of the blockchain itself, in which new blocks are mined approximately every 10 minutes. Each block contains a variety of data, most importantly it contains a 'merkle root' expression of all transactions that were accepted by nodes during that block time. This is slow and clunky. Lightning, on the other hand, essentially allows two nodes to stow some bitcoin away in a multi-sig channel. The two parties within this channel can now transact privately and instantaneously in a private channel off the main blockchain. Next, many of these nodes can be interconnected to create a web of Lightning nodes, effectively creating the Lightning Network. The network supports multi-hop routing, where payments are forwarded throughout the web of connected channels. These transactions are enforced using hashed timelock contracts (HTLCs) and can settle in milliseconds, as long as each node along the path has sufficient liquidity. Block's Cash App is Lightning compatible, and Square bitcoin payments will also rely on Lightning. This allows both Square merchants and Cash App users to transact with bitcoin instantaneously. It creates the most widely deployed bitcoin payment rail. Block's head of Bitcoin, Miles Suter, spoke at the bitcoin conference on May 28th. He mentioned that Cash App has seen a 7x increase YoY in Lightning payment volume and 25% of outbound transactions are now on Lightning. Why does this matter? It matters because Block operates a sizable Lightning channel (the 7th largest, known as c=) and earns nearly 10% bitcoin on bitcoin yield. With 189 bitcoins in the channel (according to mempool), this represents a yield of nearly 20 btc per year. At $100k per coin, this is $2m per year in passive yield on the company's bitcoin, which is otherwise sitting in its treasury. Yield is generated by Lightning nodes when they place BTC liquidity in a channel and open that channel up to route payments through it. This is non-custodial yield, meaning Block still maintains ownership of that bitcoin. They are generating yield with an asset on their balance sheet without introducing counterparty risk. If payments stop flowing, there is no risk to the bitcoin. The yield will just dry up. Bitcoin 2025 livestream The biggest question mark for Square payments, though, is on tax treatment. As it stands, bitcoin is classified as property, meaning it is a commodity and is regulated by the CFTC. Selling a commodity triggers a taxable event, requiring a calculation of profit by taking asset value at time of sale versus cost basis. On the back end of a Square bitcoin transaction, Block would sell bitcoin for the equivalent amount of USD, allowing the customer to pay in bitcoin and the merchant to receive USD. The issue is that this creates a taxable event. But how can you calculate the cost basis? It is conceivable that this is possible for bitcoin purchased through Cash App and held in Cash App, but for any bitcoin paid from an external wallet, it becomes prohibitively difficult to calculate tax. Further, this creates a two-tiered tax (capital gains and sales tax) for customers and disincentivizes use. This question is likely the reason that Block said "The roll out... is expected to reach all eligible Square sellers in 2026, subject to applicable regulatory approvals." in the first section of the announcement. Regardless, this move highlights how well the company is driving forward the bitcoin ecosystem. It is helping to bridge the gap of bitcoin adoption from enthusiasts to everyday people. It is building the infrastructure required to facilitate this and has the expansive two-sided merchant / consumer network required to greatly accelerate it. For those that believe that Bitcoin will play an integral role in the financial world of tomorrow, it's difficult to find a company better positioned to boom from that paradigm shift. Assuming that both bitcoin payments on Square and Proto's bitcoin mining chip reach mass rollout in 2026 (this is a fairly big assumption), Block will have successfully tied together its entire Bitcoin ecosystem. Again, this ties into my thesis of product stack deepening (bitcoin mining ASIC) and innovation in existing products (bitcoin payments on square). All that's left for the company's Bitcoin segment is to execute on this. Risks The biggest risk to the thesis of this article is in the thesis itself: execution. Block has faced challenges in the past with execution. The stock has tumbled a long way from the COVID-era highs around $280. In the past few years, Block has gone through layoffs, executive reshuffles, an influx of competitive threats, an ever-changing regulatory environment, a short report, countless analyst downgrades, mass inflation, and the fastest rate hike cycle in recent history. Not a favorable environment for a fintech. Throughout this time, they have been evolving as a company as well. Jack Dorsey sold Twitter and moved back to full-time CEO of the company and brought renewed focused on the ecosystem of ecosystems strategy. Amidst the challenging macro backdrop, the company lost focus on the Square segment. Square is still the market leader, but only by a narrow margin, with around 28% share. Cash App made up for much of this weakness for a while but hasn't grown monthly active users in 5 consecutive quarters. The stock has suffered severe multiple compression since. Despite reporting booming EPS growth, the stock is completely range-bound and has been for 3 years now. Data by YCharts Investor Takeaway We are now at a crossroads. Block's traditional finance segments, Square and Cash App, need to reaccelerate growth. The company is focused on the following things to achieve this: outbound marketing and large business acquisition for Square and network density and teen customer acquisition for Cash App. The company's bitcoin business is doing phenomenal, as we discussed, but this is largely ignored by the market. It is not yet very accretive to Block's financial results, but that will change over time. The execution risk remains. Should the company fail to reignite Square and Cash App growth, the stock will continue lagging the market. This is the opportunity, though. The market is basically pricing in a lack of execution. Despite exceptional EPS growth, the stock trades at only 22x forward PE. Using estimated 2026 earnings, the stock trades at 15x forward PE. Meanwhile, EPS is inflecting underpinned by robust subscription & services segment growth. I believe there's plenty of reason to remain bullish, as described in this article, so I believe there's plenty of reason to remain invested or initiate a position in Block stock. I rate the company a Strong Buy.