Block Surges Toward S&P 500: Is Bitcoin the Catalyst That Sends SQ to the Moon?
Investor Buzz Grows as Block (SQ) Eyes Crypto Integration and Institutional Boost
Block (NYSE: SQ), the fintech powerhouse behind Square, is enjoying a surge in investor enthusiasm as its stock trends upward this week. With a current price hovering around $86.96, investors are buzzing over its aggressive crypto strategy and strong analyst sentiment. Block is now riding a wave of momentum fueled by its plan to integrate Bitcoin payments at Square point-of-sale terminals, recent price target upgrades, and the highly anticipated inclusion in the S&P 500 index scheduled for July 23.
The week began on an optimistic note when Block’s S&P 500 inclusion was confirmed. It will replace Hess (NYSE: HES) following Hess’s acquisition by Chevron (NYSE: CVX), stepping into the benchmark index right before trading begins on Wednesday, July 23. The stock jumped roughly 10–11% in late Friday trading, reclaiming its 200‑day moving average and sending a message: Block is far more than a niche fintech play.
Investors are also keyed into Block’s growing exposure to Bitcoin (CRYPTO: BTC). Over the past month, BTC has climbed above $117,000, trading near $117,754 today. Meanwhile, Block confirmed its roadmap to enable native Bitcoin payments via Square terminals in the second half of 2025, using the Lightning Network for real-time, low-cost transactions—a feature already piloted in Las Vegas. This leap forward aligns with Block CEO Jack Dorsey’s commitment to embedding Bitcoin into everyday financial services.
Analysts are rallying behind Block’s strategy. Evercore ISI recently boosted its price target from $75 to $85 and reaffirmed an “Outperform” rating. In contrast, Truist Financial—despite a downgrade in rating—raised its target to $65. The Street consistently reflects optimism, with a consensus target above $74 and multiple houses rating it a “Buy” or better. On the heels of these upgrades, some, like J.P. Morgan, have even floated targets near $90 to $115, citing Block’s Bitcoin ecosystem and growing merchant adoption.
Block’s Bitcoin strategy is multifaceted: beyond enabling on‑site Bitcoin payments, the firm has launched Bitkey, a hardware self-custody wallet; Proto, its custom Bitcoin mining chip; and Cash App’s crypto features—all of which suggest Block is diversifying revenue and leveraging its crypto assets. Seeking Alpha summed it up: this is a “Bitcoin inflection” moment for Block.
Still, the road hasn’t been all smooth. Earlier this year, Block cut its 2025 profit guide, sending shares down 22% in a single session. That drop emphasized underlying concerns over its Cash App division, although Square remains robust. Recent earnings, though modest, were bolstered by cost discipline and the integration of Afterpay into Cash App, leading several firms to maintain “Overweight” or “Outperform” ratings.
Why this matters: Block’s stock is benefiting from a convergence of key drivers: crypto momentum via BTC integration, validation through analyst upgrades, and index inclusion boosting institutional demand. Its current price near $87 is well supported by a $43.5 billion market cap, forward P/E around 17, and strong growth forecasts—consensus long-term estimates project revenue climbing into the $7.5 billion range by 2026 and EPS growth over 400%.
As Bitcoin trades above $117,000 and Block charges toward Square terminal rollouts in 2026, the market is beginning to price in a future where Bitcoin is just another accepted form of payment. If Block remains a top performer, it could pave the way for broader crypto acceptance across U.S. retail.