Block Accrues $764M for DOJ Deal as Bitcoin's Profit Share Halves

Block, the company behind Cash App, has reached an agreement in principle with the US Department of Justice over a charge that it failed to run an effective anti-money-laundering program. The deal carries a net payment of about $764 million, and Block had accrued exactly that amount as of September 30, 2026, according to its third-quarter 10-Q filing.

The same filing shows how little bitcoin now adds to Block's bottom line. The bitcoin ecosystem made up 27% of Block's third-quarter revenue but only 2% of total gross profit. A year earlier, its share of gross profit was 4%.

A $964 Million Deal Under a Deferred Prosecution Agreement

Block and the DOJ reached the agreement in principle in October 2026. It takes the form of a deferred prosecution agreement, or DPA, under which the DOJ defers for three years a charge that Block violated the Bank Secrecy Act by failing to maintain an effective anti-money-laundering program.

The 10-Q puts the gross monetary component at about $964 million. Block expects to pay about $764 million net, with the $200 million gap covered by credit for prior regulatory resolutions.

If Block fully complies with the DPA's obligations over the three-year term, the DOJ will move to dismiss the deferred charge with prejudice.

Final Terms and Court Approval Still Pending

The deal is not done. The filing says the resolution remains subject to a final agreement satisfactory to all parties and to court approval. Until both happen, the $764 million is an accrual on Block's books, not a completed payment.

The Securities and Exchange Commission is no longer part of the picture. In March 2026, SEC staff told Block it had concluded its parallel investigation and did not intend to recommend an enforcement action.

Bitcoin Brings in Revenue but Little Profit

Bitcoin ecosystem revenue fell $217.2 million, or 11%, year over year in the third quarter of 2026, per the 10-Q. Block attributes the decline to a lower average bitcoin price, partly offset by higher trading volume.

The split between revenue and profit is the sharper number. Bitcoin sales through Cash App generated more than a quarter of Block's revenue in the quarter, yet only about one dollar in every fifty of gross profit.

That shrinking share came while the rest of the business grew. Block's total gross profit reached $3.2 billion in the third quarter, up 22% year over year. Cash App gross profit was $2.1 billion, up 27%.

Reports that Block's bitcoin gross profit fell 50% in the quarter, mainly because of Cash App fee cuts, could not be matched to the 10-Q. What the filing does state is the halving of bitcoin's share of total gross profit, from 4% to 2%, which is not the same measure as a 50% fall in bitcoin gross profit itself.

Next Step: A Final DPA Before a Judge

The next concrete event is a signed DPA and its approval by a court. Until then, the final figure can still move from the roughly $764 million Block has set aside, and the three-year compliance clock has not started.