Jack Dorsey’s Block to Invest 10% of Bitcoin Earnings in BTC Each Month

Jack Dorsey, the co-founder of Block, Inc., recently shared with shareholders that the company will allocate 10% of its Bitcoin-related gross profits each month to purchasing more Bitcoin.

This announcement came in a May 2 shareholder letter alongside the company’s impressive first-quarter results.

JUST IN: Jack Dorsey announces his company Block will now be buying #Bitcoin every month moving forward 👏 pic.twitter.com/KD7EhfJikn

— Bitcoin Magazine (@BitcoinMagazine) May 2, 2024

Dorsey noted, “Going forward, each month we will be investing 10% of our gross profit from Bitcoin products into Bitcoin purchases.”

He emphasized Block’s early commitment to integrating Bitcoin into its asset base, mentioning previous investments totaling $220 million in BTC during the latter part of 2020 and the beginning of 2021.

“Our investment in Bitcoin transcends technology; it is an investment in a future where economic empowerment is the norm,” Dorsey stated.

JUST IN: Jack Dorsey said his company Block is buying #Bitcoin every month. pic.twitter.com/UuhZSlkrkP

— Bitcoin Archive (@BTC_Archive) May 2, 2024

As of March 31, Block reported holding 8,038 BTC, valued at approximately $573 million, marking a significant paper gain of $233 million.

The company’s first-quarter earnings revealed that its Bitcoin gross profit, derived from customer sales via its Cash App, surged by nearly 60% year-over-year, reaching $80.1 million.

At the current Bitcoin price of $59,250, this strategy could allow the purchase of about 1,350 BTC each month.

Block’s overall Bitcoin revenue also rose, with a 26% increase year-on-year to $2.73 billion in the first quarter, which the company attributed to higher average market prices over the period.

In his shareholder letter, Dorsey expressed his dedication to Bitcoin, explaining that he invests considerable time in it because he believes “the world needs an open protocol for money.”

This, he asserts, would enhance Block’s ability to expand its global service faster.

Despite this focus, Dorsey disclosed that less than 3% of the company’s resources are devoted to Bitcoin-related initiatives.

JUST IN: Jack Dorsey's 'Block' says it will buy #Bitcoin every month with 10% of its gross profit from $BTC products.

— Watcher.Guru (@WatcherGuru) May 2, 2024

Moreover, Block has been actively developing its cryptocurrency capabilities, including the recent launch of the Bitkey Bitcoin wallet.

Furthermore, on April 23, the company announced plans to create a comprehensive Bitcoin mining system designed to address the challenges faced by miners following the Bitcoin halving event, which reduced mining rewards by half.

Dorsey concluded by envisioning a future where “the internet will have a native currency,” although he acknowledged that it will take time for this to fully materialize.

JUST IN ‼️ – Jack Dorsey reveals that Block is “DCA'ing bitcoin every month.”

Here is Block’s “Bitcoin Blueprint for Corporate Balance Sheets,” also shared by Dorsey.#Bitcoin pic.twitter.com/sYUEc96ES6

— Swan (@Swan) May 2, 2024

He projected that the current and emerging financial systems would continue to function concurrently for some time.

This move by Block, Inc. not only underscores the firm’s ongoing commitment to Bitcoin but also highlights the broader financial and technological impacts of such strategic investments in the cryptocurrency landscape.

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