Jack Dorsey’s Block (formerly called Square) is diving deeper into Bitcoin with something big—an open-source mining chip named Proto. Slated for a 2025 launch, Block’s betting it can shake up the $3–$6 billion Bitcoin mining hardware space, where giants like Bitmain, MicroBT, and Canaan have ruled for years.
Speaking during Block’s Q1 2025 earnings call, CEO Jack Dorsey said the company is on track with development and doesn’t expect delays, mainly because the chip is being entirely built in the United States.
By relying on domestic manufacturers and suppliers, Dorsey noted that Block’s mining hardware won’t be impacted by global trade tensions or the ongoing tariff war involving the U.S. and some of its trading partners.
“We have very close relationships with our vendors and manufacturers, and we are building in the United States,” said Dorsey.
Proto is being developed as a flagship Bitcoin mining chip, but it’s not just about mining. Dorsey emphasized that it’s part of a completely open-source initiative. That means developers and miners can access the design, provide feedback, and even build on top of it.
“This is a completely open-source initiative… allowing us to get a lot of feedback from the community and also integrate any improvements right away and just build an entirely new developer ecosystem around mining which has not been done at scale before,” Dorsey added.
According to Block, the chip’s open-source nature will open the door to new platforms, experiments, and products, helping decentralize and innovate the mining space — a first at this scale.
Block’s push into Bitcoin hardware comes at a critical time. The company is looking to diversify its revenue streams after a sluggish Q1 performance.
For the first quarter of 2025, Block reported $2.29 billion in gross profit, a 9% year-over-year increase. Most of this came from Cash App ($1.38 billion, up 10% YoY) and Square ($898 million, up 9% YoY). However, earnings still fell short of expectations.
Block also posted adjusted EBITDA of $813 million, but both Cash App’s growth and earnings per share came in lower than anticipated, causing the company’s stock to plunge by 21.20%.
Adding to the pressure, Block slashed its 2025 gross profit growth forecast from 15% to 12% and shared a Q2 projection of $2.45 billion, below Wall Street’s estimates.
In a statement, the company cited the macroeconomic environment and reduced consumer spending for the weaker guidance:
“We are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year.”
The drop in Bitcoin’s price during Q1 hit Block’s finances hard. The company posted a $93.4 million unrealized loss on its Bitcoin holdings — a big swing from the $233.4 million gain it saw just last quarter. Revenue from Bitcoin trading also fell sharply, down 15.7% year-over-year to $2.30 billion, marking a clear setback for its crypto business.
Still, Jack Dorsey isn’t backing down.
He’s positioning the company’s upcoming open-source Bitcoin mining chip, Proto, as a key part of the turnaround strategy. Built in the U.S. and designed to encourage developer innovation, Proto reflects Block’s push to carve out space in the $6 billion mining hardware market. The company says it’s launching new features in the coming months aimed at improving profitability and strengthening user retention in the second half of the year.
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