Block to Invest 10% of Bitcoin Profits into BTC Monthly

As a seasoned crypto investor with a deep understanding of the industry, I’m thrilled to see Jack Dorsey and Block, Inc. doubling down on their Bitcoin investment strategy. Their decision to DCA (Dollar Cost Average) Bitcoin every month is a wise move that aligns with my own personal investment philosophy.

Block, Inc., headed by Jack Dorsey, the co-founder of Twitter, intends to allocate 10% of the gross profits generated from its Bitcoin business for monthly Bitcoin purchases, having experienced a prosperous first quarter marked by rising Bitcoin revenues.

block is DCA’ing bitcoin every month. here’s how your company can do it too:

— jack (@jack) May 2, 2024

In the letter to shareholders on May 2nd, Dorsey highlighted that Block, previously known as Square, was an early proponent of Bitcoin and had invested approximately $220 million in it during the last quarter of 2020 and the first quarter of 2021. As of March 31st, the company owned around 8,038 Bitcoins with a market worth of nearly $573 million and reported additional unrealized gains from Bitcoin trading amounting to $233 million.

In Q1 2024, Block’s Bitcoin gross profit experienced a significant surge, reaching $80.1 million – a 58% year-over-year improvement. This growth was fueled primarily by a substantial 26% rise in Bitcoin revenue to an impressive $2.73 billion. The sales of Bitcoin to customers through Cash App were the main driver of this increase.

During his speech, Dorsey emphasized the importance of Bitcoin as an open financial system. He reinforced Block’s goal of reaching a larger user base around the world through this innovation. Meanwhile, just a small fraction of the company’s efforts – approximately 3% – are directed towards Bitcoin-related projects.

Recently, Block introduced a new Bitcoin wallet named Bitkey. Additionally, they are in the process of creating a Bitcoin mining system, which is set to be available soon. Dorsey expresses the belief that the internet could eventually have its own currency, but this transition may occur gradually as traditional financial systems continue to exist.

This strategic action aligns with Block’s perspective of a future in which using Bitcoin for economic empowerment is widespread.

Read More

2024-05-03 08:04