Block (XYZ -0.58%) is a success story in the financial services industry, thanks to its two main segments: Square and Cash App. Even though each serves a different customer group, they both emphasize providing a superior user experience. And they're both growing gross profit at a double-digit clip.
These positive factors haven't prevented the share price from dropping 72% from the all-time high (as of Oct. 6). The market isn't optimistic about this business. But here's one reason this fintech stock could soar over the next 10 years.
Image source: Block.
Bitcoin has caught the attention of Jack Dorsey
Block's co-founder and CEO, Jack Dorsey, has shifted his attention to Bitcoin in recent years. "Bitcoin changes absolutely everything," he said at a conference in 2021. "I don't think there is anything more important in my lifetime to work on."
His belief is that the internet will need a native currency. As a neutral, global, decentralized, and secure choice, Bitcoin tops the list.
This is a key catalyst, but the future is uncertain
Block is working on many Bitcoin projects. Cash App allows users to trade crypto. Square merchants can accept it as payment. The company sells a Bitcoin hardware wallet and mining equipment. Block also owns Bitcoin on the balance sheet.
If Bitcoin's price continues to soar, and Block finds adoption and continues innovating in the space, then its stock price could do very well over the next decade. A favorable outcome isn't a virtual certainty, though.
