Product News
“Trading idea”: Block Inc. – Riding the crypto wave
-
Serge Nussbaumer
Chefredaktor
Knock-Out Warrant Call on Block Inc.
Crypto fans are currently getting their money’s worth: rising institutional demand, the expectation of further price gains and support from crypto-friendly government policies have caused the market capitalization of the crypto market to rise to around USD 3.8 trillion. The new wave of optimism drove the world’s oldest and largest cyber currency, Bitcoin, above the USD 120,000 mark for the first time in July 2025. However, it is not just ETF issuers and crypto traders who are benefiting from this; more and more companies are also sitting on large holdings of Bitcoin. These include Block, which is managed by tech billionaire Jack Dorsey. The vaults of the company, which specializes in blockchain technology, contain more than USD 1 billion worth of coins.
Part of Block’s corporate strategy is to invest a portion of the money it earns in Bitcoin. This was started in 2020 and the company now owns more than 8,500 BTC. Block is not only Bitcoin, but also sells technology solutions. The company positions itself as an interface between traditional payment transactions and digital assets and offers products ranging from POS systems and peer-to-peer transfers to Bitcoin services.
The Cash App, which enables peer-to-peer mobile payments, recorded gross profit growth of 10% at the start of the year, compared to 25% in the previous year. As a result, Block lowered its forecast for gross profit growth for the full year from 15% to 12%. For the second quarter, the company forecast a gross profit of USD 2.45 billion. Investors will find out whether this has been achieved when the figures are presented on August 7. One thing is certain: Bitcoin holdings have increased significantly in value. The cyber currency increased in value by around 30% between April and June.
“Block is not only Bitcoin, but also sells technology solutions”
The share is also currently on the rise. In addition to the bull market on the crypto market, the share was also recently boosted by its inclusion in the S&P 500, which shows how digital payment and financial apps have become mainstream in the US and revolutionized traditional banking models. As index funds are obliged to include the members in their portfolio, demand for the share has increased. If J.P. Morgan has its way, then rightly so: “We believe Block deserves a higher multiple given the recent momentum in product velocity and marketing efforts, and its inclusion in the S&P 500 helps.”
The analysts at Bernstein are also looking ahead with confidence and recently raised their price target from USD 75 to USD 90. The experts see potential for improvement in the figures and also in Cash App’s monthly active user growth, particularly with a view to the second half of the year. Trading-oriented investors can accelerate the recent positive momentum in the Block share with a knock-out warrant call. The leverage is 4.72 and the stop loss is USD 60,525, more than a fifth away from the current level.
Product information*
| ISIN | CH1452898732 |
| Product type | Knock-Out Warrant Call |
| Underlying | Block Inc. |
| Issuer | BNP Paribas |
| Rating | A+ (S&P) |
| Trading currency | CHF |
| First trading day | 23.06.2025 |
| Maturity | open-end |
| Underlying | USD |
| Leverage* | 4.72 |
| Stop loss* | USD 60,525 |
| Financing level* | USD 60,525 |
| Ask* | CHF 1.42 |
| Exchange | Swiss DOTS |
| Weblink | payoff.ch/CH1452898732 |
Share price development Block Inc.
