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Block Plans to Invest 10% of Bitcoin Product Profits into Bitcoin

03/05/2024 04:45

According to Bloomberg, Block has announced plans to invest 10% of its gross profit from Bitcoin products each month into buying Bitcoin. This information was shared by the company's CEO in a recent letter to shareholders. At present, less than 3% of the company’s resources are dedicated to Bitcoin projects. The CEO stated that the company believes in the need for an open protocol for money, one that is not owned or controlled by any single entity. They see Bitcoin as the best and only candidate to be that protocol, and to ultimately become the native currency of the internet. The company's previous investment of $220 million in Bitcoin, which made it one of the first public companies to hold Bitcoin on its balance sheet, had grown by about 160% to $573 million by the end of the first quarter. Block reported its Ebitda, or adjusted earnings before interest, taxes, depreciation and amortization, was $705 million for the three-month period, nearly doubling from the year prior and surpassing analyst estimates. Adjusted diluted earnings per share were $0.85, also exceeding expectations of $0.71. The firm has increased its outlook for full-year adjusted Ebitda, predicting $2.76 billion, up from $2.63 billion. It also raised its guidance for adjusted operating income to $1.30 billion for the year, compared to its earlier forecast of $1.15 billion. Despite these positive financial results, the company's shares were down 9% for the year through Thursday.

Bullish

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