Jack Dorsey, the co-founder of Twitter, has announced that his fintech company, Block, will allocate 10% of its gross profit from Bitcoin products to purchase BTC every month. In a shareholder letter on May 2, Dorsey stated, “Going forward, each month we will be investing 10% of our gross profit from Bitcoin products into Bitcoin purchases.” He also highlighted Block’s early adoption of Bitcoin, with the company acquiring $220 million worth of BTC between Q4 2020 and Q1 2021.
According to Block’s latest earnings report, the company held 8,038 Bitcoin as of March 31, valued at around $573 million, with a reported paper gain of $233 million. Block’s Bitcoin gross profit for Q1 2024, generated through customer sales on its Cash App business, increased by nearly 60% compared to the previous year, reaching $80.1 million. Approximately 10% of this profit could buy roughly 1,350 BTC at the current price of $59,250.
Block’s Q1 Bitcoin revenue, which represents the sales amount of Bitcoin sold to its customers, rose by 26% year-on-year to $2.73 billion. This increase was attributed to the rising average market price of Bitcoin during the quarter.
In the shareholder letter, Dorsey emphasized his dedication to Bitcoin, stating, “I’m spending so much time on Bitcoin,” and expressing his belief that the world needs an open protocol for money. He further explained that such a protocol could benefit Block by enabling it to serve more people globally at a faster pace. However, he noted that less than 3% of the company’s resources are currently allocated to Bitcoin-related projects.
In December 2023, Block launched its Bitkey Bitcoin wallet, and it recently announced its plans to develop a full Bitcoin mining system to address challenges faced by miners following the Bitcoin halving, which reduced rewards by 50%.
Dorsey concluded his letter by stating, “The internet will have a native currency; it’s just a matter of time.” He acknowledged that this transition will not occur overnight and that existing and emerging financial systems will continue to operate alongside each other for some time.