Key Highlights:
- Square is generating a 9.7% yield on its Bitcoin holdings via its involvement as a node on the Lightning Network.
- This yield is realized through Square’s Lightning service provider c=, established two years ago to enhance liquidity and operational efficiency.
- The Lightning Network, often heralded as the solution to Bitcoin’s scalability issues, has seen its progress stagnate in recent years.
Details:
Square, the payment platform under Jack Dorsey’s Block, is achieving a yield of 9.7% on its Bitcoin portfolio thanks to operations on the Lightning Network. Block’s Bitcoin product lead Miles Suter noted in his remarks at the Bitcoin 2025 conference in Las Vegas that they are earning “real Bitcoin returns from our corporate holdings…by efficiently routing real payments across the Lightning network.”
Additionally, Ryan Gentry from Lightning Labs characterized Suter’s announcement as “the biggest news” at the conference, estimating that Square’s yield could be roughly equivalent to $1 million annually.
Historically, the Lightning Network has been viewed as pivotal in addressing Bitcoin’s challenges related to scale by enabling micropayment channels to facilitate transactions separate from the main blockchain. Recently, however, certain challenges such as the need for available liquidity have dampened enthusiasm for widespread adoption, mainly among smaller entities that may find the setup unjustifiably burdensome.
Despite these obstacles, Square considers the Lightning Network crucial for boosting Bitcoin payment adoption, with one in four of its outbound Bitcoin payments currently processed via Lightning. The company is currently testing Lightning-based payments at Bitcoin 2025 and plans a broader rollout for eligible Square sellers in 2026.
Suter emphasized, “When you enable real payments by making them faster and more convenient, the network gets stronger, smarter, and more useful.” He concluded by asserting that “Bitcoin is already an asset and a protocol, and Block is driving efforts to establish it as the leading payment system globally.”
