Block Inc.'s Square has crossed 1 million merchants enabled to accept Bitcoin payments, the company announced this week. The milestone comes less than two months after auto-enrollment kicked off March 30, automatically switching on BTC payments for eligible U.S. sellers. At peak pace, a new business activated the feature every eight seconds. The rollout relies on the Lightning Network for near-instant settlement, with merchants receiving U.S. dollars by default while customers can pay in Bitcoin. It's a concrete step toward Block's broader push to make bitcoin usable as everyday money — not just a long-term hold.
Auto-enrollment hits a million
When Block's Bitcoin Product Lead Miles Suter spoke at the Bitcoin Conference, more than 800,000 Square merchants already had BTC auto-enrollment enabled. Now that number has passed 1 million. Suter put it plainly: Bitcoin 'must circulate, not just sit still.' The system handles the conversion behind the scenes — customers pay in Bitcoin via Lightning, merchants get USD settlements. Merchants can opt out anytime, but so far most are staying in.
New features for merchants and users
Block is rolling out a tap-to-pay Bitcoin feature using NFC hardware and the Lightning Network. Merchants won't pay processing fees on those transactions through the end of 2026. On the consumer side, Cash App users can now auto-convert peer-to-peer payments into BTC, earn 5% Bitcoin Back rewards when they shop at Square merchants, and withdraw up to $10,000 per day or $25,000 per week. The combination is designed to make spending and earning bitcoin frictionless.
Bitkey hardware wallet gets an update
Block also introduced an updated Bitkey hardware wallet. The new version adds a touchscreen and uses a 2-of-3 multisig security model — meaning two of three private keys are needed to authorize a transaction. It's a direct response to the self-custody demand that's grown alongside the payment push.
Proof of reserves: 28,355 BTC
Block released its Q1 2026 proof-of-reserves report, showing the company holds 28,355.05 Bitcoin — worth roughly $2.2 billion at current prices. The report adds transparency as Block deepens its bet on Bitcoin as a payment rail rather than just a corporate treasury asset.
The tap-to-pay rollout is still in its early stages, with zero processing fees running through the end of the year. Whether that incentive drives sustained merchant adoption beyond the initial auto-enrollment surge is the question Block will have to answer next.
