Block, Inc. to Reinvest 10% Monthly Profit From Bitcoin Operations Back into BTC
Summary:
Twitter co-founder Jack Dorsey's fintech company, Block, Inc., plans to reinvest 10% of its monthly gross profits from Bitcoin-driven products back into the cryptocurrency. The company, which has actively engaged in Bitcoin transactions, showed robust growth from its Bitcoin operations in its Q1 2024 report. Its data reveals 8,038 BTC holdings—which approximately equals $573 million—coupled with a potential gain of $233 million. Despite Dorsey's commitment to Bitcoin, less than 3% of Block's resources are utilized for Bitcoin-related initiatives.
In a letter to shareholders, Jack Dorsey, co-founder of Twitter, announced that his financial tech company, Block, Inc., will invest 10% of its gross monthly profit from Bitcoin-related products back into purchasing Bitcoin. With Block being one of the first publicly traded firms to adopt Bitcoin, it has consistently invested in Bitcoin, purchasing $220 million worth of BTC between Q4 2020 and Q1 2021. By the end of Q1 2021, Block had on its books 8,038 BTC—equivalent to $573 million—with a reported unrealized gain of $233 million.
The company's financial earnings report for Q1 2024 showed that income from Bitcoin sales via their Cash App service increased by almost 60% year over year, resulting in revenues of $80.1 million. Based on Bitcoin's current rate of $59,250, the company’s commitment would translate to around 1,350 BTC in purchases.
The firm experienced a 26% year-over-year increase in Bitcoin revenue—amounting to $2.73 billion—due to the surge in Bitcoin’s average market price. Dorsey further expounded on his commitment to Bitcoin, stating it goes beyond technology; he sees it as a means to promote economic empowerment.
Though Dorsey is often seen championing Bitcoin, the firm currently allocates less than 3% of its resources to Bitcoin-related ventures. Despite this, Block launched their Bitkey Bitcoin wallet in December and announced on April 23 that they were developing a comprehensive Bitcoin mining system to alleviate post-halving challenges.
This dedication to Bitcoin, as per Dorsey, is based on his belief that the world needs an open money protocol, and though it won't happen suddenly, both existing and emerging financial systems will coexist for a while.
Published At
5/3/2024 2:52:22 AM
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