- Jack Dorsey’s financial technology company, Block, has attracted attention with its Bitcoin investment. Moreover, it has decided to invest 10% of all profits earned from related products into monthly BTC purchases.
- Dorsey, speaking to shareholders in the Q1 2024 earnings report, outlined several reasons for this decision. He also addressed concerns about why Block is so focused on the largest cryptocurrency.
- Block aims to make BTC more usable for daily transactions and aims to use the cryptocurrency as a medium of exchange for the internet.
Block, owned by Jack Dorsey, has made a significant move in the crypto space with its Bitcoin investment strategy. The company plans to invest 10% of all profits into monthly BTC purchases, aiming to make the cryptocurrency more usable for daily transactions.
Block’s Monthly Bitcoin Investment Strategy
Jack Dorsey announced that Bitcoin is the best and only candidate for a decentralized open protocol for the money the world needs. According to him, BTC will eventually become the native currency of the internet. It will also help serve users worldwide faster without the need to customize hundreds of payment plans and intermediaries. Block aims to make BTC more usable for daily transactions. In this context, it aims to use the cryptocurrency as a medium of exchange for the internet. It also wants to solve the original problem stated in the project’s whitepaper.
Bitcoin as the Efficient Protocol for the Internet
The problem Nakamoto mentioned in the whitepaper is the lack of an electronic payment system based on cryptographic proof instead of trust, which would allow two willing parties to transact directly over the internet without a third party. Dorsey says it’s only a matter of time before the internet has a native currency. Moreover, he states that the most efficient protocol for this is Bitcoin. In this context, Dorsey emphasizes the following points: Historically and looking forward, our investment in Bitcoin goes beyond technology; it’s an investment in a future where economic empowerment is the norm. This commitment is taking our business into new territories, unlocking new opportunities for our customers, and providing lasting value for you, our shareholders.
Block’s First Quarter Revenue Exceeds Estimates
As we mentioned at CoinOtag, Block will make monthly BTC purchases. In addition, it is building Bitcoin mining hardware, including a mining equipment system and a three-nanometer ASIC mining chip. So far, Block has allocated $220 million to BTC. Moreover, by the end of the first quarter of 2024, this investment increased by approximately 160% to $537 million. Meanwhile, Block earned revenue of $5.96 billion in the first quarter of 2024. This exceeded Wall Street analysts’ estimate of $5.75 billion by 3.54%. The company’s gross profit rose 22% year-on-year (YOY) to $2.09 billion. Mobile payments and crypto platform Cash App’s gross profit rose 25% to $1.26 billion.
Conclusion
Block’s Bitcoin strategy underlines its commitment to economic empowerment and the future of decentralized finance. By investing in Bitcoin and making it more usable for daily transactions, Block is not only strengthening its own financial position but also contributing to the broader acceptance and utility of cryptocurrency. As the company continues to exceed revenue estimates and invest in Bitcoin, it will be interesting to watch its impact on the crypto market.
