Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Block (SQ), the payments company formerly called Square, should try to play down its association with bitcoin because the link is holding back its stock, which would otherwise benefit from the company's improving business fundamentals, Mizuho equity research analyst Dan Dolev wrote in a note to clients.

  • While bitcoin has accounted for about 4% of total company gross profit over the last two years, the proportion is declining, Dolev said.
  • Excluding bitcoin, gross profit is accelerating for Block, and its payments service Cash App showed strong engagement in March, Dolev added.
  • Mizuho lowered its price target to $135 from $215, while maintaining its buy recommendation. Shares of the San Francisco-based company have lost more than 50% this year and were trading at about $74 on Thursday.
  • Disassociating from bitcoin may be challenge. CEO Jack Dorsey is a bitcoin fan, has heavily promoted and supported the development of the blockchain-based Lightning Network and added bitcoin functionality to Cash App, among other moves.
  • Cash App generated $1.73 billion in bitcoin transactions and $43 million of gross profit in the first quarter.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC