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- Block Inc., led by Jack Dorsey, announces a plan to invest 10% of its monthly Bitcoin
-related gross profits into BTC purchases. - The company reported Bitcoin-related gross profits of $80 million in Q1 2024, potentially leading to an annual investment of around $24 million in BTC.
- Dorsey shares a “Bitcoin Blueprint For Corporate Balance Sheets,” encouraging other corporations to integrate BTC into their financial strategies.
Block Inc., Jack Dorsey’s financial services company, plans to invest a significant portion of its Bitcoin-related profits back into BTC, potentially influencing other corporations to do the same.
Block Inc.’s Bitcoin Investment Strategy
Block Inc. recently announced that it will begin investing 10% of its monthly Bitcoin-related gross profits into BTC purchases. This decision follows the release of the company’s first-quarter earnings for 2024, which showed substantial profits from its Bitcoin operations. If this trend continues, the company could invest approximately $24 million in BTC within one year. The company’s strategy involves purchasing Bitcoin through over-the-counter transactions with a liquidity provider, using a Time-Weighted Average Price (TWAP) to minimize price slippage.
Bitcoin Blueprint For Corporate Balance Sheets
Jack Dorsey elaborated on the company’s new investment strategy in a recent post, stating, “Block is DCA’ing Bitcoin every month. Here’s how your company can do it too.” He also shared a detailed document titled “Bitcoin Blueprint For Corporate Balance Sheets,” which serves as a comprehensive guide for other corporations interested in integrating BTC into their financial strategies. The document also highlights the company’s rigorous approach to the custody of digital assets, centered around cold storage solutions backed by Hardware Security Modules (HSMs).
Block’s Bitcoin Holdings and Products
Block, formerly known as Square, began its substantial acquisitions in October 2020, purchasing 4,709 BTC at an aggregate price of $50 million. The company later bought an additional 3,318 BTC in February 2021 for $170 million. As of March 31, 2024, Block holds approximately 8,038 BTC, representing about 9% of its total cash and marketable securities. Block’s involvement in BTC extends beyond investments. The company’s ecosystem includes a range of BTC-related products and services such as Cash App, which allows customers to buy and sell Bitcoin, and TBD, an open developer platform aimed at decentralizing financial services.
Conclusion
Block’s strategy to invest a significant portion of its Bitcoin-related profits back into BTC not only reflects its belief in BTC as a tool for global economic empowerment but also sets an example for other corporations. With the company’s comprehensive guide for integrating BTC into corporate financial strategies, more businesses may consider similar investment strategies, potentially leading to increased corporate adoption of Bitcoin.