- Block, Inc., led by Twitter co-founder Jack Dorsey, announces plans to invest 10% of its gross profit from Bitcoin products into buying Bitcoin every month.
- The company currently holds 8,038 BTC, valued at $573 million, with reported paper gains of $233 million.
- Gross profit from Bitcoin products surged nearly 60% year-on-year to $80.1 million.
Block, Inc., led by Twitter co-founder Jack Dorsey, signals strong confidence in Bitcoin with plans to invest 10% of its gross profit from Bitcoin products into buying more of the cryptocurrency every month.
Block’s Commitment to Bitcoin
In a move signaling strong confidence in Bitcoin and a commitment to its adoption, Jack Dorsey, co-founder of Twitter and CEO of Block, Inc., announced that Block will allocate 10% of its gross profit from Bitcoin products into buying Bitcoin every month. Dorsey revealed this plan in a shareholder letter released on May 2, along with Block’s better-than-expected first-quarter results. “Going forward, each month we will be investing 10% of our gross profit from Bitcoin products into Bitcoin purchases,” wrote Dorsey, emphasizing the company’s dedication to Bitcoin.
Block’s Bitcoin Holdings and Revenue
Block has been a pioneer in integrating Bitcoin into its operations. Dorsey highlighted that Block was one of the first public companies to add Bitcoin to its balance sheet, having purchased $220 million worth of BTC across the fourth quarter of 2020 and the first quarter of 2021. According to Block’s latest earnings report, as of March 31, the company held 8,038 BTC, valued at $573 million, with reported paper gains of $233 million. Block’s Bitcoin-related revenue saw substantial growth in the first quarter of 2024. The gross profit from Bitcoin products, generated through customer sales with its Cash App business, surged nearly 60% year-on-year to $80.1 million. Given the current price of Bitcoin at $59,400, 10% of this amount could buy around 1,350 BTC.
Conclusion
This move by Block, Inc. underscores the growing acceptance and integration of Bitcoin in the financial strategies of major corporations. With a clear commitment to the cryptocurrency, Block is not only investing in Bitcoin as an asset but also promoting its wider adoption in the financial ecosystem.
