According to CryptoPotato, Block, the financial technology conglomerate owned by X co-founder Jack Dorsey, has announced plans to invest 10% of all profits from bitcoin-related products into monthly BTC purchases. This decision was communicated to shareholders during a Q1 2024 earnings report, where Dorsey addressed concerns about Block's focus on the largest cryptocurrency.
Dorsey explained that bitcoin is the only viable candidate for a decentralized open protocol for money, which he believes the world needs. He further stated that bitcoin would eventually become the native currency of the internet, eliminating the need for hundreds of payment schemes and intermediaries. Block's goal is to make BTC more usable for everyday transactions, aligning with the original vision of its pseudonymous creator, Satoshi Nakamoto.
Nakamoto's white paper highlighted the need for an electronic payment system based on cryptographic proof, allowing two parties to transact directly without a third party. Dorsey believes that it's only a matter of time before the internet, including artificial intelligence systems, adopts a native currency, and bitcoin is the most efficient protocol for this.
In addition to monthly BTC purchases, Block is also developing Bitcoin mining hardware, including a mining rig system and a three-nanometer ASIC mining chip. To date, Block has invested $220 million into BTC, which had grown by approximately 160% to $537 million by the end of Q1 2024.
Block's Q1 2024 revenue of $5.96 billion exceeded Wall Street analysts' estimate of $5.75 billion by 3.54%. The company's gross profit increased 22% year-over-year to $2.09 billion, while its mobile payments and crypto platform, Cash App, reported a 25% year-over-year increase in gross profits to $1.26 billion.
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