What Block’s CFO and finance team want peers to know about Bitcoin

Block (SQ) is significantly expanding its corporate Bitcoin strategy, holding 8,692 BTC as of Q2 and launching "Square Bitcoin" for businesses on November 10, signaling a long-term investment view and growing institutional crypto infrastructure. Separately, Palantir (PLTR) reported robust Q3 revenue of $1.2 billion, up 63% year-over-year, driven by a 121% surge in U.S. commercial customer growth. E*TRADE data for October indicated clients were net buyers in most S&P 500 sectors, favoring communication services and utilities, while taking profits in healthcare.

Analysis

Block (SQ) is significantly deepening its corporate Bitcoin integration, holding 8,692 BTC as of Q2 and launching "Square Bitcoin" on November 10 to enable businesses to hold Bitcoin. The company's strategy evolved from a $50 million learning exercise in 2020 to a dollar-cost averaging approach in 2024, reinvesting 10% of monthly gross profit from Bitcoin products. Block's leadership views Bitcoin as a long-term strategic asset, emphasizing matured institutional infrastructure and clear risk parameters.

Palantir (PLTR) reported robust third-quarter revenue of $1.2 billion, a 63% year-over-year increase that exceeded analyst expectations. This growth was primarily fueled by a substantial 121% year-over-year expansion in its U.S. commercial customer business, reaching $397 million. CEO Alex Karp characterized these results as exceptionally strong for a software company.

E*TRADE client data for October 2025 indicated broad buying interest, with net purchases across 10 of 11 S&P 500 sectors. Communication services (+11.80%), utilities (+11.78%), and financials (+10.87%) were the most favored sectors. Notably, utility buying was driven by risk-on exposure to nuclear and alternative energy stocks, while clients appeared to take profits in healthcare after previous rallies.

Key Decisions for Investors

• Monitor Block's "Square Bitcoin" launch for indications of broader business adoption of crypto payments and corporate balance sheet integration.
• Evaluate Palantir's commercial segment growth for sustainability and its contribution to overall profitability, given its strong Q3 performance.
• Consider re-evaluating sector allocations, noting the continued investor preference for communication services and the risk-on shift within utilities as per E*TRADE client data.
• Assess the implications of increasing corporate treasury adoption of Bitcoin, as evidenced by Block's strategy, for the long-term stability and institutionalization of digital assets.