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- Block, formerly known as Square, Inc, has announced plans to buy Bitcoin
with 10% of its gross profits from Bitcoin-related products and services. - The company will be acquiring Bitcoin on a monthly basis as part of a “principled investment approach”.
- Block’s first-quarter revenue included $2.7 billion from Bitcoin sold to customers, and the company also launched a service last month that allows companies to convert up to 10% of their revenue into Bitcoin automatically.
Block, previously Square, Inc, is set to invest 10% of its gross profits from Bitcoin-related services into Bitcoin purchases. This move is part of a long-term investment strategy, reflecting the company’s strong commitment to the cryptocurrency.
Block’s Bitcoin Investment Plan
During its recent earnings call, Block detailed a months-long plan to buy Bitcoin with 10% of its gross profits from Bitcoin-related products and services. The company implemented a Bitcoin dollar cost average (DCA) purchase program in April that will run through 2024. This approach of acquiring Bitcoin on a monthly basis is seen by the company as a “principled investment approach” rather than “purchasing Bitcoin in lump sums”.
Block’s Financial Performance and Bitcoin Revenue
Block reported gross profits of $2 billion in the first quarter, up 22% from a year earlier. Revenue in the first quarter came in at nearly $6 billion, rising 19% year-over-year. A significant portion of Block’s first-quarter revenue came from Bitcoin sold to customers, totaling $2.7 billion. The company also offers the custodial wallet BitKey and a specialized chip for crypto miners.
Conclusion
Block’s decision to invest a portion of its gross profits into Bitcoin is a clear indication of the company’s belief in the potential of the cryptocurrency. This move, coupled with the company’s strong financial performance and increasing Bitcoin revenue, positions Block as a major player in the crypto space. The company’s commitment to Bitcoin is likely to influence other businesses to consider similar investment strategies, potentially driving further adoption of Bitcoin in the corporate world.