Jack Dorsey’s Block doubles down on Bitcoin, commits 10% of product profit to monthly BTC purchases

Block,
the
financial
services
and
digital
payments
company
co-founded
by
Jack
Dorsey,
has
announced
plans
to
purchase
Bitcoin
every
month
using
10%
of
its
gross
profit
from
Bitcoin
products.
The
new
investment
strategy
shows
the
company’s
long-term
commitment
to
the
flagship
crypto,
which
Dorsey
has
frequently
endorsed
as
a
significant
innovation
in
finance.

“We
believe
the
world
needs
an
open
protocol
for
money,
one
that’s
not
owned
or
controlled
by
any
single
entity,”
Jack
Dorsey

said
in
a
letter
to
shareholders
on
Thursday.
“We
believe
Bitcoin
is
the
best
and
only
candidate
to
be
that
protocol,
and
to
ultimately
become
the
native
currency
of
the
internet.”

As
reported,
Block’s
substantial
$220
million
investment
in
Bitcoin
has
already
appreciated
by
approximately
160%,
amounting
to
$573
million
at
the
end
of
Q1/2024.
This
growth
comes
amid
a
surge
in
Bitcoin
prices,
driven
by
factors
such
as
US
regulatory
approval
of
spot
Bitcoin
exchange-traded
funds.

However,
the
volatility
of
the
crypto
market
remains
a
concern.
Despite
the
risks,
Block
shows
a
willingness
to
adapt
as
necessary.

“We
would
check
back
in
on
this
approach
and
assess
Bitcoin
as
a
percentage
of
our
overall
liquidity,
and
would
continue
to
remain
nimble
in
how
we
move
forward
here,”
Amrita
Ahuja,
Block’s
Chief
Financial
Officer told
Bloomberg.

In
the
first
quarter,
Block’s
Cash
App
reported
a
profit
of
$80
million
from
Bitcoin
transactions,
contributing
to
the
company’s
current
holdings
of
8038
BTC.

The
company’s
financial
performance
has
been
strong,
with
first-quarter
gross
profit
reaching
$2.09
billion,
largely
fueled
by
the
$1.26
billion
generated
by
Cash
App.
Following
the
announcement,
Block’s
shares
saw
a
7.4%
increase
in
late
New
York
trading.

Block
operates
in
various
sectors
including
financial
services,
digital
payments,
and
blockchain
technology.
The
company,

formerly
known
as
Square,
offers
a
range
of
services
aimed
at
small
and
medium
businesses.
Currently,
less
than
3%
of
Block’s
resources
are
dedicated
to
Bitcoin
projects.

Apart
from
Cash
App,
the
company
is
also
involved
in
the
Bitcoin
mining
business
and

self-custody
wallet
service.
In
late
April,
Block
officially
completed
the

development
of
its
advanced
three-nanometer
Bitcoin
mining
chip
and
now
focuses
on
building
a
full
Bitcoin
mining
system.