Jack Dorsey's Company, Block, Plans to DCA Bitcoin Monthly
Jack Dorsey's Company, Block, Plans to DCA Bitcoin Monthly
The co-founder of Block, Inc., Jack Dorsey, has informed shareholders about his plan to purchase Bitcoin, stating that this move is an "investment for the future."
Block Will DCA Bitcoin with Gross Profits
"In the future, we will invest 10% of the gross profits from our Bitcoin products into purchasing Bitcoin each month," Dorsey wrote in a letter to shareholders on May 2, 2024, which also included better-than-expected first-quarter results.
"We are one of the first public companies to put Bitcoin on our balance sheet," he added. Block purchased Bitcoin worth US$220 million in the fourth quarter of 2020 and the first quarter of 2021.
"Our investment in Bitcoin goes beyond technology; it is an investment for the future where economic empowerment becomes the norm," Dorsey expressed.
The latest revenue report shows that Block holds 8,038 BTC as of March 31, 2024 (worth US$573 million) with a paper profit of US$233 million.
Block's gross profit from its Bitcoin products for the first quarter of 2024 via Cash App increased by nearly 60% year-over-year to US$80.1 million. 10% of this amount could be used to purchase around 1,350 BTC at the current price of around US$59,250.
Jack Dorsey Remains Optimistic About Bitcoin
In the letter to shareholders, Dorsey stated that he has "spent so much time on Bitcoin" because he believes the world needs "money" with an open-source protocol.
He claimed that open-source protocols like Bitcoin can benefit Block by helping it "serve more people around the world faster."
Dorsey added that "about 3% of the company's resources are dedicated to Bitcoin-related projects."
In December, the company launched the Bitkey Bitcoin wallet, and last week on April 23, 2024, announced that they are building a "complete Bitcoin mining system" to help address challenges faced by miners after the Bitcoin halving, which reduces the reward by 50%.
"The internet will have a native currency; it's just a matter of time," Dorsey wrote. "It won't happen overnight. The existing and emerging financial systems will operate in parallel for some time."
Conclusion
Jack Dorsey's company, Block, is taking significant steps towards embracing Bitcoin as a key asset and investment vehicle for the future. By allocating 10% of its gross profits from Bitcoin products to monthly purchases of the cryptocurrency, Block demonstrates a strategic commitment to building its Bitcoin holdings and integrating them into its financial strategy.
Dorsey's belief in Bitcoin's potential for economic empowerment and his dedication to the development of open-source protocols underline the company's long-term vision and optimism in the cryptocurrency space. With initiatives such as launching Bitcoin wallets and developing a complete Bitcoin mining system, Block is actively participating in the evolution of Bitcoin and positioning itself to capitalize on its growing prominence in the financial landscape. As Dorsey aptly puts it, the transition to a native internet currency may take time, but Block's proactive approach ensures it remains at the forefront of this transformative journey.
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*Disclaimer:
This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.
