Block (SQ) Boosts Bitcoin (BTC) Portfolio to $4.7 Billion: Dorsey’s Crypto Strategy

  • Block, the payments firm led by CEO Jack Dorsey, has launched a dollar cost averaging (DCA) program to expand its Bitcoin holdings.
  • The firm will leverage 10% of its monthly Bitcoin-related gross profit for additional Bitcoin purchases throughout 2024.
  • Block’s original Bitcoin investment of $220 million has appreciated by 160% to $573 million.

Block, led by CEO Jack Dorsey, plans to expand its Bitcoin holdings by leveraging 10% of its monthly Bitcoin-related gross profit for additional Bitcoin purchases throughout 2024.

Block’s Bitcoin Investment Strategy

Block’s decision to expand its Bitcoin holdings follows its first-quarter financial results, which revealed an $80 million Bitcoin gross profit. If this profit trend continues, Block is expected to add nearly $24 million worth of Bitcoin to its balance sheet by the end of the year. The firm’s shares saw an uptick in the after-hours trading session on Thursday following the release of first-quarter earnings that exceeded analyst expectations.

First-Quarter Financial Results

The company reported adjusted earnings of 85 cents per share, with revenue reaching $5.97 billion—above Wall Street’s forecast of $5.82 billion. Gross profit for the quarter increased by 22% year-over-year to $2.09 billion. Moreover, Block publicized its plans to grow its Bitcoin reserves and has made its treasury blueprint public, encouraging other companies to adopt similar strategies.

Dorsey’s Vision for Bitcoin

Block’s move to expand its Bitcoin holdings aligns with Dorsey’s vision of Bitcoin becoming the native currency of the internet. “We believe the world needs an open protocol for money, one that’s not owned or controlled by any single entity. We believe Bitcoin is the best and only candidate to be that protocol,” Dorsey stated in a shareholder letter.

Block’s Bitcoin Holdings

Block’s original Bitcoin investment of $220 million has appreciated by 160% to $573 million. Block’s Cash App unit also reported a 25% growth in gross profit year-over-year for the first quarter, driven by a range of services including its BNPL platform, Bitcoin products, and Cash App Borrow. At the current Bitcoin price of about $59,000, these holdings are valued at roughly $4.7 billion.

Conclusion

Block’s strategy to leverage its Bitcoin-related gross profit for additional Bitcoin purchases throughout 2024 demonstrates its commitment to the cryptocurrency. With its original Bitcoin investment appreciating significantly, the firm is poised to further strengthen its position in the crypto market.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

spot_imgspot_imgspot_imgspot_img

PRO Analysis

Marisol Navaro
Marisol Navarohttps://en.coinotag.com/
Marisol Navaro is a young 21-year-old writer who is passionate about following in Satoshi's footsteps in the cryptocurrency industry. With a drive to learn and understand the latest trends and developments, Marisol provides fresh insights and perspectives on the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Bitcoin’s Bullish Momentum: Will BTC Skyrocket Amid ‘Trump Trade’ and Ethereum ETF Launch?

Bitcoin has maintained its position above $60K, a significant achievement since mid-July. Several potential catalysts could influence BTC's trajectory. Will these...

Major Hack on WazirX: $150 Million in Stolen Funds Converted to Ethereum (ETH)

The recent cyberattack on WazirX, a prominent cryptocurrency exchange, has captured widespread attention due to its scale and the hacker’s...

Donald Trump Set to Declare Bitcoin a Strategic Reserve: Key Details Unveiled

Donald Trump is reportedly set to announce Bitcoin (BTC) as a strategic reserve in an upcoming week. ...