May 25, 2024
Jack Dorsey
Bitcoin News

Jack Dorsey’s Block to Invest 10% Gross Profit in Bitcoin

Twitter co-founder Jack Dorsey announced that his fintech firm Block will allocate 10% of its gross profit from Bitcoin products into purchasing the cryptocurrency every month. This bold move indicates his firm trust in Bitcoin’s future.

Dorsey outlined this strategy in a shareholder letter released on May 2, alongside the company’s robust first-quarter results.

Early Bitcoin Adoption and Continued Investment

Block’s commitment to Bitcoin extends back to its early days. It is one of the first public companies to include Bitcoin on its balance sheet. Between the fourth quarter of 2020 and the first quarter of 2021, Block purchased $220 million worth of BTC.

Moreover, Dorsey emphasized that this investment transcends technology, framing it as a stake in a future where economic empowerment is widespread.

Financial Performance and Bitcoin Revenue Surge

The latest earnings report reveals Block’s significant holdings, with 8,038 Bitcoin valued at approximately $573 million as of March 31. The firm reported paper gains of $233 million on these holdings. Block’s Bitcoin gross profit surged nearly 60% year-on-year in the first quarter of 2024, reaching $80.1 million.

This growth is attributed to increased customer sales through its Cash App business, with up to 10% of this profit potentially purchasing around 1,350 BTC at the current price.

Jack Dorsey’s Vision for Bitcoin and Block’s Future

Dorsey reiterated his dedication to Bitcoin, stating that he spends a significant amount of time on advancing the cryptocurrency.

He envisions a future where Bitcoin serves as an open protocol for money, benefiting Block by enabling it to reach more people globally at a faster pace.

Despite this commitment, Dorsey noted that less than 3% of the company’s resources are currently allocated to Bitcoin-related projects.

Block’s recent initiatives include the launch of its Bitkey Bitcoin wallet in December 2023 and the announcement of a “full Bitcoin mining system” aimed at supporting miners post-Bitcoin halving.

Jack Dorsey remains confident in Bitcoin’s long-term potential. He asserts that while the transition to an internet-native currency won’t happen overnight, it’s inevitable.

Image from Flickr

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