Block Expands OpenIP to Bitkey Wallet, Proto Mining as Q3 Gross Profit Rises 18%
Block expanded its OpenIP project on February 4 to include Bitkey wallet and Proto mining hardware, enhancing its bitcoin hardware portfolio. Q3 gross profit jumped 18% to $2.66 billion and full-year forecast rose to $10.24 billion, though EPS of $0.54 missed estimates, prompting Citi to cut its target to $85.
1. OpenIP Expansion
On February 4, Block broadened its OpenIP project to include Bitkey, a self-custody bitcoin hardware wallet, and Proto, its bitcoin mining hardware and services brand, building on its October 2025 initiative to foster open innovation in hardware development.
2. Q3 Financial Performance
In the third quarter, Block delivered an 18% increase in gross profit to $2.66 billion and raised its full-year gross profit forecast to $10.24 billion, but recorded adjusted earnings per share of $0.54, falling short of analyst estimates.
3. Analyst Forecast Revisions
Following the earnings release, Citi trimmed its price target on Block from $105 to $85 while retaining a Buy rating and forecasting a 19% gross profit increase, and Truist raised its price objective from $68 to $72 with a Hold rating, noting cautious management guidance amid tougher comparisons.