Here’s why Jack Dorsey blocks 10% of his Bitcoin profits and invests them in BTC every month

Financial technology conglomerate Block, owned by X co-founder Jack Dorsey, has decided to invest 10% of its profits from bitcoin-related products into monthly BTC purchases.

Speaking to shareholders on the Q1 2024 earnings report, Dorsey outlined several reasons for the decision, addressing investor concerns about why blockchain is focused on the big cryptocurrency.

Block to invest in Bitcoin every month

Dorsey explained that Bitcoin is the best and only candidate for the decentralized open protocol currency that the world needs. BTC will eventually become the currency of the Internet and help to quickly serve users worldwide without the need to customize hundreds of payment methods and intermediaries.

Block also intends to make BTC more usable for everyday transactions, using the cryptocurrency as a means of exchange on the Internet, and solving the original problem that crypto-inventor Satoshi Nakamoto described in the project's white paper.

The problem cited in the white paper, Nakamoto said, is the lack of an electronic payment system based on cryptographic evidence, rather than trust, which would allow two willing parties to transact directly over the Internet without the need for a third party.

Dorsey believes that the internet already has a local currency, including artificial intelligence systems and agents, and that it's only a matter of time before the most efficient protocol for that is bitcoin.

“Historically and in the future, our investment in bitcoin is more than technology; it's an investment in future economic empowerment. This commitment will lead our business into new territories, open up new opportunities for our customers and create sustainable value for you shareholders,” said Dorsey.

Block Q1 earnings beat estimates.

In addition to conducting monthly BTC purchases, Block is also developing Bitcoin mining hardware, including a mining system and a three-nanometer ASIC mining chip.

To date, Block has allocated $220 million to BTC, and by the end of Q1 2024, the investment has grown by approximately 160% to $537 million.

Meanwhile, the bloc's Q1 2024 revenue of $5.96 billion beat Wall Street analysts' estimate of $5.75 billion by 3.54 percent. The company's gross profit grew 22 percent year-over-year (YOY) to $2.09 billion, and mobile payments and crypto platform Cash App reported a 25 percent year-over-year rise in gross profit to $1.26 billion.