The fintech company Block, Inc., led by Twitter co-founder Jack Dorsey, plans to invest 10% of its Bitcoin product gross profit into purchasing Bitcoin monthly, following a successful first quarter with increased Bitcoin revenue.
In the shareholder letter of May 2, Dorsey pointed out that Block, formerly Square, was one of the earliest adopters of Bitcoin and invested $220 million in BTC between Q4 2020 and Q1 2021. As of March 31, the firm had holdings of 8,038 BTC with a market value of $573 million and unrealized trading gains of $233 million.
Block’s Bitcoin gross profit grew by 59% year-on-year to $80.1 million in Q1 2024, sparked by the 26% increase in Bitcoin revenue to $2.73 billion resulting from sales to customers through its Cash App business.
The highlight of Dorsey’s speech was the significance of Bitcoin as an open protocol for money. He reiterated that Block strives to serve more and more people across the globe through this technology. For their part, only 3% of the company’s resources are devoted to Bitcoin projects.
Block has recently launched a Bitkey Bitcoin wallet and is designing a Bitcoin mining system that will be ready soon. Dorsey thinks the internet may well be said to have a native currency, but this will be done gradually alongside traditional financial systems.
Following the release of the Q1 2024 report by Block, the stock price went up by 5% in 24 hours, currently trading at $70.3.
This tactical move resonates with Block’s vision of a future where the use of Bitcoin as an economic empowerment tool becomes commonplace.
Also Read: Federal Prosecutors Investigate Block’s Crypto Services
