Block, owned by X co-founder Jack Dorsey, recently announced that they will be investing 10% of profits made from bitcoin-related products into monthly BTC purchases. In his Q1 2024 earnings report, Dorsey emphasized the importance of bitcoin as the best candidate for a decentralized open protocol for money. This move comes as Block addresses concerns from investors about their focus on the largest cryptocurrency. Dorsey believes that bitcoin has the potential to become the native currency of the internet, eliminating the need for multiple payment schemes and intermediaries.
One of Block’s goals is to make BTC more usable for everyday transactions, in line with the vision outlined by the pseudonymous creator Satoshi Nakamoto in the project’s white paper. Nakamoto highlighted the lack of an electronic payment system based on cryptographic proof, enabling direct transactions between parties without the need for a third party. Dorsey sees bitcoin as the most efficient protocol for the internet, especially as the world moves towards a digital future.
According to Dorsey, Block’s investment in bitcoin goes beyond technology; it is an investment in a future where economic empowerment is widespread. This commitment not only drives business growth but also unlocks new opportunities for customers and provides enduring value for shareholders. By investing in bitcoin and supporting its growth, Block aims to pave the way for a more decentralized and efficient financial ecosystem.
In addition to monthly BTC purchases, Block is actively involved in building Bitcoin mining hardware, including innovative mining rigs and ASIC mining chips. The company has already allocated a significant amount, $220 million, into BTC investments, which grew by approximately 160% to $537 million by the end of Q1 2024. Block’s revenue for Q1 2024 also exceeded Wall Street estimates, with a gross profit of $2.09 billion, representing a 22% year-over-year growth. The firm’s mobile payments and crypto platform Cash App reported a 25% increase in gross profits to $1.26 billion, highlighting the strong performance of Block’s diverse portfolio.
Block’s strategic focus on bitcoin and blockchain technology showcases a long-term vision of creating a more inclusive and efficient financial system. By investing in bitcoin and supporting its growth, Block aims to revolutionize the way financial transactions are conducted, ultimately leading to greater economic empowerment and value creation for all stakeholders involved. As the world continues to embrace digital currencies and decentralized finance, Block’s commitment to bitcoin positions them as a key player in shaping the future of finance.