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In a move signaling strong confidence in Bitcoin and a commitment to its adoption, Jack Dorsey, co-founder of Twitter and CEO of Block, Inc., announced that Block will allocate 10% of its gross profit from Bitcoin products into buying Bitcoin every month.
Dorsey revealed this plan in a shareholder letter released on May 2, along with Block’s better-than-expected first-quarter results. “Going forward, each month we will be investing 10% of our gross profit from Bitcoin products into Bitcoin purchases,” wrote Dorsey, emphasizing the company’s dedication to Bitcoin.
Block has been a pioneer in integrating Bitcoin into its operations. Dorsey highlighted that Block was one of the first public companies to add Bitcoin to its balance sheet, having purchased $220 million worth of BTC across the fourth quarter of 2020 and the first quarter of 2021.
“Our investment in Bitcoin transcends technology; it is an investment in a future where economic empowerment is the norm,” Dorsey stated, underscoring the broader implications of Block’s commitment to Bitcoin. More importantly, he stated that his company will continue DCAing BTC every month.
According to Block’s latest earnings report, as of March 31, the company held 8,038 BTC, valued at $573 million, with reported paper gains of $233 million.
Block’s Bitcoin-related revenue saw substantial growth in the first quarter of 2024. The gross profit from Bitcoin products, generated through customer sales with its Cash App business, surged nearly 60% year-on-year to $80.1 million. Given the current price of Bitcoin at $59,400, 10% of this amount could buy around 1,350 BTC.
The company’s Bitcoin revenue, derived from the amount of Bitcoin sold to Block customers, also increased by 26% year-on-year to $2.73 billion in Q1. Block attributed this growth to the rising average market price of Bitcoin over the quarter.
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