The fintech startup Block, Inc., headed by Jack Dorsey, a co-founder of Twitter, intends to use 10% of the gross profit from its Bitcoin product to buy Bitcoin on a monthly basis after a profitable first quarter with higher Bitcoin income.
Dorsey noted in the May 2 shareholder letter that Block, formerly Square, was among the first companies to adopt Bitcoin, having committed $220 million in the cryptocurrencycurrency between Q4 2020 and Q1 2021. With 8,038 BTC in possession as of March 31, the firm had unrealized trading gains of $233 million and a market value of $573 million.
With sales to consumers through its Cash App business driving a 26% growth in Bitcoin revenue to $2.73 billion, Block’s Bitcoin gross profit climbed by 58% year over year to $80.1 million in Q1 2024.
Block just released the Bitkey Bitcoin wallet, and it is currently working on a Bitcoin mining system that should be finished shortly. According to Dorsey, it won’t happen overnight; rather, it will happen gradually in tandem with established financial institutions.
The relevance of Bitcoin as an open money technology was the high point of Dorsey’s speech. He restated Block’s goal of using this technology to help an increasing number of people worldwide. Only 3% of the company’s resources, on their side, are allocated to Bitcoin initiatives.
This calculated action is in line with Block’s vision of a time when using Bitcoin as a tool for economic empowerment is widespread.
Read also: Jack Dorsey’s Block Under Federal Scrutiny for Non-Compliant Crypto Services