Block Inc., Led by Jack Dorsey, Announces Monthly Bitcoin Purchase Plan

Discover Jack Dorsey's latest move with Block Inc., where they plan to buy Bitcoin monthly using profits from Bitcoin products.

A bold step reflecting their commitment to integrating Bitcoin into the future of finance, find out how this strategy could shape the cryptocurrency landscape.

Block to Buy Bitcoin Monthly with 10% of BTC Product Profits

Fintech company Block, headed by Twitter co-founder Jack Dorsey, announced on May 2, 2024, that it would allocate 10% of the gross profits from its Bitcoin-related products to buy Bitcoin each month.

Known formerly as Square, Block is an American fintech company that offers payment-related services like Square and Cash App.

This Bitcoin purchasing strategy was discussed in a shareholder report for the first quarter, where it was stated, "Block was one of the first public companies to put Bitcoin on its balance sheet."

We plan to dedicate 10% of our gross profit from bitcoin products to bitcoin purchases each month going forward. We are one of the first publicly traded companies to have bitcoin on our balance sheet.

Bitcoin: The New Money the World Needs

Block had previously purchased $220 million worth of Bitcoin in Q4 2020 and Q1 2021. By Q1 2024, the value of this Bitcoin had increased by about 160%, amounting to approximately $573 million.

The company mentioned in its recent report, "We believe the world needs an open money protocol that is not owned or controlled by any single entity, and Bitcoin is the best and only candidate for this."

But why spend time on Bitcoin in the first place?

We believe that "the world needs an open money protocol that is not owned and controlled by a single entity" and that "Bitcoin is the best and only candidate for that protocol and will eventually become the native currency of the Internet."

"Why spend time on Bitcoin? We believe that the world needs an open money protocol not owned or controlled by any single organization, and Bitcoin is the best and only candidate for this protocol, ultimately becoming the native currency of the internet," the report added.

Block's Array of BTC-Related Services

Block already offers several Bitcoin-related services:

• Cash App: A mobile payment app that supports the Lightning Network, allowing fast, low-cost Bitcoin transfers.
• Square: A payment service that includes POS systems and a "BTC auto-conversion feature" for store sales.
• Bitkey: A self-managed Bitcoin wallet that ensures more secure personal Bitcoin management through a combination of mobile apps, hardware devices, and recovery tools.

Furthermore, Block has been developing services related to Bitcoin mining, announcing last month the construction of a "complete Bitcoin mining system."

In Q1 2024, Block's gross profit from Bitcoin was $80.1 million, a 60% increase over the previous year through customer sales via Cash App.

The company also reported that the amount of Bitcoin sold to customers during the quarter increased by 26% year-over-year to $2.73 billion, driven by rising BTC prices.

The initiative to regularly purchase Bitcoin follows similar trends by MicroStrategy, El Salvador, and Metaplanet, suggesting a potential expansion of such movements in the future.

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