Jack Dorsey’s fintech giant Block is doubling down on Bitcoin with a bold move to allocate 10% of its bitcoin-related profits towards monthly BTC purchases. During its Q1 2024 earnings report, Dorsey addressed concerns over Block’s Bitcoin focus, asserting that the world needs a decentralized open protocol for money, and Bitcoin is the only viable candidate to become the internet’s native currency.
Dorsey believes Bitcoin will eventually eliminate the need for hundreds of payment schemes and intermediaries, aligning with Satoshi Nakamoto’s vision of a cryptographically secure electronic payment system allowing direct peer-to-peer transactions. He sees Bitcoin as the most efficient protocol for the internet, including AI systems, to adopt a native currency.
Alongside the monthly BTC purchases, Block is developing Bitcoin mining hardware, including a mining rig system and a three-nanometer ASIC mining chip. The company has already invested $220 million in BTC, which grew by approximately 160% to $537 million by the end of Q1 2024.
Block’s Q1 2024 revenue of $5.96 billion exceeded Wall Street estimates by 3.54%, with gross profit increasing 22% year-over-year to $2.09 billion. Its mobile payments and crypto platform, Cash App, reported a 25% year-over-year increase in gross profits to $1.26 billion.
