Block Raises 2025 Profit Forecast on Strong Consumer Spending; Shares Rise 6%

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Block reported higher second-quarter net income and raised its full-year gross profit forecast, driven by resilient consumer spending amid economic uncertainty. The payments company’s shares jumped 6% in extended trading following the announcement.

The firm now expects 2025 gross profit to reach $10.17 billion, up from a prior forecast of $9.96 billion. CFO Amrita Ahuja highlighted strong signs in key growth drivers during the quarter that boosted confidence in the outlook.

Key highlights from Q2:

  • Cash App’s gross profit grew 16% year-over-year, though slower than last year’s 23% growth.

  • Square segment’s gross profit increased 11%, fueled by software, integrated payments, and banking product adoption among small and medium businesses.

  • Bitcoin revenue declined to $2.14 billion from $2.61 billion year-over-year.

  • Total net revenue slightly decreased to $6.05 billion from $6.16 billion.

  • Adjusted net profit rose to $385 million (62 cents per share), compared to $301 million (47 cents) a year earlier.

Despite nearly a 10% share price decline in 2025 due to market volatility and earlier profit cuts, Block’s stock has benefited recently from its inclusion in the S&P 500 index.

Two Seas Capital Opposes $9 Billion Core Scientific–CoreWeave Merger

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Two Seas Capital, the largest shareholder of crypto mining firm Core Scientific, announced it will vote against the company’s proposed $9 billion sale to AI-focused data center operator CoreWeave. The investment firm, which holds about 6.3% of Core Scientific’s shares, argues the deal “materially undervalues” the company and poses unnecessary risks to shareholders.

CoreWeave, which provides access to Nvidia-powered AI chips and data centers, agreed last month to acquire Core Scientific in an all-stock transaction valued at $20.40 per share. The deal aims to repurpose Core Scientific’s energy-intensive sites—originally built for cryptocurrency mining—to support growing AI infrastructure needs.

Two Seas says it is not opposed to a merger in principle but insists the board must secure terms that reflect the strategic worth of Core Scientific’s assets. The firm believes the current proposal “decidedly and unfairly favors CoreWeave.”

Core Scientific’s stock dropped over 17% when the merger was first announced, though it was marginally higher Thursday. CoreWeave’s shares rose 6% at the time of the announcement but remained unchanged on the latest news.

Core Scientific, which emerged from bankruptcy in early 2024, has been shifting its business model toward AI-driven energy utilization. The company previously rejected an unsolicited bid from CoreWeave in June 2024, citing undervaluation concerns.

US Federal Judiciary Reports Sophisticated Cyberattacks on IT Systems

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The Administrative Office of the U.S. Courts announced on Thursday that federal judiciary IT systems have been targeted by “recent escalated cyberattacks of a sophisticated and persistent nature.” The disclosure follows a Politico report claiming that the judiciary’s electronic case filing system was compromised in a sweeping hack, potentially exposing sensitive court data across several states.

According to Politico’s sources, the breach affected the federal case management system, including the Case Management/Electronic Case Files (CM/ECF) platform used by legal professionals to upload and manage documents, and the Public Access to Court Electronic Records (PACER) system, which provides public, paid access to certain case data.

While the Administrative Office’s statement did not confirm the full extent of Politico’s findings, it stressed that the judiciary is focusing on enhancing security measures and collaborating with courts to reduce the impact on litigants. The nature of the attacks and the actors behind them have not yet been disclosed.