Jack Dorsey, co-founder of Twitter and CEO of Block, announced that Block will allocate 10% of its gross profit from Bitcoin-related products to purchase Bitcoin every month. This decision was outlined in a shareholder letter discussing Block’s strong first-quarter performance.
Block, known for being an early adopter of Bitcoin by adding it to its balance sheet, purchased $220 million worth of BTC between the fourth quarter of 2020 and the first quarter of 2021. Dorsey emphasised that this investment goes beyond technology; it represents a commitment to a future where economic empowerment is widespread.
As of March 31, Block held 8,038 Bitcoin valued at approximately $573 million, with reported paper gains of $233 million.
In the first quarter of 2024, Block’s Bitcoin-related gross profit from customer sales via its Cash App business increased by nearly 60% year-on-year to $80.1 million. Up to 10% of this profit could be used to purchase around 1,350 BTC at the current price of $59,250 per Bitcoin.
Block’s Bitcoin revenue, generated from Bitcoin sales to customers, also rose by 26% year-on-year to $2.73 billion in Q1, benefiting from the increasing average market price of Bitcoin during the quarter.
Dorsey expressed a strong personal interest in Bitcoin, believing that the world needs an open protocol for money. He stated that such a protocol could enable Block to serve more people globally at a faster pace. Despite his focus on Bitcoin, Dorsey noted that less than 3% of Block’s resources are dedicated to Bitcoin-related projects.
Block recently launched the Bitkey Bitcoin wallet in December 2023 and announced plans to develop a full Bitcoin mining system to assist miners after the Bitcoin halving in April 2024.
Dorsey remains optimistic about the future of Bitcoin, asserting that the internet will eventually adopt a native currency, although the transition will occur gradually as existing and emerging financial systems operate concurrently.