Jack Dorsey’s payment company, Block (formerly known as Square), is doubling down on its commitment to Bitcoin following Trump’s win in an election. In its latest quarterly earnings report, the company announced plans to increase its investments in Bitcoin mining and its self-custody wallet, Bitkey.
Block shared in its third-quarter shareholder letter that demand for its bitcoin mining initiative is strong, with a healthy pipeline that aligns with Donald Trump’s recent campaign calls to position the U.S. as a leader in bitcoin mining.
This move aligns with Block’s broader strategy to support the decentralization of Bitcoin and its growing belief in the cryptocurrency’s long-term potential. Earlier this year, Block completed the design of a three-nanometer bitcoin mining chip and announced it would develop a full bitcoin mining system to support decentralization in the mining industry. The company partnered with Core Scientific in July to supply the mining firm with its advanced mining chips.
As part of its renewed focus, Block intends to scale back investments in its music streaming platform Tidal and wind down TBD, the arm dedicated to developing a decentralized web platform known as “Web5.” The company has reportedly laid off staff in these divisions as part of this strategic shift, following a 10% workforce reduction in December last year.
Financially, Block reported third-quarter revenue of $5.98 billion, falling short of analysts’ estimates of $6.24 billion. Following the earnings announcement, Block’s stock initially dropped 10% in after-hours trading but has since rebounded to about $73.95, according to Google Finance.
The company’s third-quarter revenue came in slightly below analysts’ expectations. While this news initially caused a dip in Block’s stock price, it has since recovered.
