Jack Dorsey, co-founder of Twitter and CEO of fintech firm Block, announced that Block will allocate 10% of its gross profit from Bitcoin products to purchasing BTC every month.
In a shareholder letter dated May 2, Dorsey emphasized Block’s commitment to Bitcoin, highlighting its pioneering move of adding Bitcoin to its balance sheet early on. Block invested $220 million in BTC between the fourth quarter of 2020 and the first quarter of 2021.
As of March 31, Block held 8,038 Bitcoin, valued at approximately $573 million, with reported paper gains of $233 million.
Block’s Bitcoin gross profit for the first quarter of 2024, generated from customer sales through its Cash App business, surged nearly 60% year-on-year to $80.1 million. Up to 10% of this profit, around $8 million, could purchase approximately 1,350 BTC at the current price of $59,250.
Bitcoin revenue, representing the sale amount of Bitcoin to Block customers, increased by 26% year-on-year to $2.73 billion in Q1. This growth was attributed to the rising average market price of Bitcoin throughout the quarter.
Dorsey expressed his dedication to Bitcoin, stating that he spends significant time on Bitcoin-related endeavors. He believes in the importance of an open protocol for money, which he sees as crucial for Block to serve more people globally.
Despite Dorsey’s focus on Bitcoin, he noted that less than 3% of Block’s resources are dedicated to Bitcoin-related projects. However, Block has launched initiatives such as the Bitkey Bitcoin wallet in December 2023 and is working on developing a full Bitcoin mining system to support miners post-Bitcoin halving.
Dorsey remains optimistic about Bitcoin’s future, asserting that the internet will eventually adopt a native currency. He acknowledges that this transition won’t occur overnight and expects existing and emerging financial systems to coexist for some time.
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