Jack Dorsey’s block will reinvest 10% of Bitcoin profits into BTC

Block, formerly Square, Inc., outlined a months-long plan during Thursday's earnings call to buy bitcoin along with 10% of its gross profits from bitcoin-related products and services.

“In April, Block implemented a Bitcoin Dollar Cost Averaging (DCA) purchase program that will run until 2024,” the company said in a statement. Blog post. “Under the program, Block will invest 10% of its total profits from Bitcoin products into Bitcoin purchases.”

Earning Bitcoin monthly is a more “principled investment approach” than “buying Bitcoin all at once,” the company said in a statement. Corporate designThe blockchain describes how bitcoins are stored, secured and accounted for until 2024.

Meanwhile, the company was founded by Twitter founder Jack Dorsey. reported Gross profit of $2 billion in the first quarter, up 22 percent from a year ago. Revenue in the first quarter was nearly $6 billion, up 19 percent year-over-year.

A significant portion of Block's first-quarter revenue came from bitcoin sales to customers, totaling $2.7 billion. Along with allowing users of the payment app Cash app to buy Bitcoin, Block also offers it Guardian Wallet BitKey And a special chip for crypto miners.

The company's renewed commitment to Bitcoin follows the launch of A. Service Companies allowed last month Change their income up to 10% to Bitcoin automatically. By combining Block Square and the Cash app, the company charges companies a 1% fee if daily sales are converted to Bitcoin.

From coffee shops to street vendors, Square's business technology platform supports more than four million sellers; Processing 209 billion in payments last year. In the first quarter, Block reported that Square did $50 billion in transactions, up 7 percent from the same period last year.

Block's shares rose as much as 9% to $76.59 after earnings, but the company's stock price was at $72.17 as of press time on Friday. After falling more than 3 percent last week, the stock fell to $66.17 on Wednesday, amid reports that U.S. prosecutors are investigating Block's bitcoin trading. Non-compliance.

Michael Saylor, founder and chairman of MicroStrategy Bright Block Bitcoin activity on Twitter. The value of Bitcoin stash 14.5 billion dollarsMicroStrategy, a software development firm, has become the largest corporate owner of Bitcoin since its initial acquisition in 2020.

MicroStrategy's portfolio has accumulated 214,000 bitcoins over 30 purchases. But before Thursday's announcement, Dorsey's block had only bought bitcoin twice, despite being an early adopter among Wall Street trading firms.

Block 4,700 bitcoins at an average of $10,600 brought Bitcoin on his balance sheet in less than two months since doing micro strategy. It was the purchase. Followed In the year At the beginning of 2021, the block will be reduced by $220 million on another 3,300 Bitcoin.

With a total of 8,000 BTC of blockchain assets, it ranks seventh among publicly traded companies, behind a few crypto miners, crypto exchange Coinbase (9,480 BTC) and Elon Musk's Tesla (9,720 BTC). Bitcoin vaults Data.

Edited by Andrew Hayward.