Block’s Co-founder Jack Dorsey discusses a plan with the shareholders to invest a gross profit of 10% of Bitcoin products in buying Bitcoin (BTC) every month. This planning by Dorsey is an investment for the economically empowered future of Block.
The Co-founder Jack Dorsey of the Fintech Firm Block is planning to invest a portion of 10% of the gross profit of his Bitcoin product into Bitcoin to build a strong economic infrastructure. The Block Planning to buy BTC every month to maintain consistency.
Jack Dorsey attached a letter from shareholders which includes Quarter1 results of Block which is finer than usual expectancy. It is the first and foremost public company to have Bitcoin stated in the Balance sheet of Block. Additionally, he puts some previous years' data to show the well-built economy of the company. Whereas he presents the contribution of Quarter 4 of 2020 and Quarter 1 of 2021 worth $220 million, respectively.
In the latest report on 31st March 2024, the details of Block’s earnings are revealed where it held 8038 BTC valued at $573 million with paper gains (paper gain is an unreleased theoretical profit of the investment which is not yet sold out) of $233 million.
Besides this, the Cash App business of Dorsey shows the latest record of the 2024 gross profit of Block’s Bitcoin which states that quarter 1 customer sales were approximately 60% which is $80.1 million. The 10% of $80.1 million could add around 1350 BTC to the business, as calculated on the current Bitcoin price. The Bitcoin revenue from the sale of Bitcoin to the Block customers was 26% in quarter 1 to $2.73 billion.
The impact of Block’s Investment in BTC will bring tremendous changes towards technology enrichment. This investment plan in Bitcoin will elevate the technology. It is an economic empowerment norm that will impact the future of Block and Bitcoin.
Jack Dorsey addressed in the shareholder letter that the world needs an open protocol for money that’s why he’s dedicated a significant amount of his time to Bitcoin for handling money. He thinks that having such an open system could greatly benefit Block by enabling it to reach and assist more individuals globally at a faster pace.
Dorsey mentioned that only a small portion, less than 3% of the company's resources are focused on Bitcoin-related projects. Despite this, the company recently introduced its Bitkey Bitcoin wallet and announced plans to develop a Full Bitcoin Mining System. This move aims to support miners dealing with challenges following the Bitcoin halving, where rewards were cut in half.
Dorsey expressed his belief that eventually, the internet will adopt its own currency, but it won't happen immediately. He emphasized that traditional and new financial systems will coexist for a while. This will sort money fluency and transaction system.
According to Coin Gabbar, Jack Dorsey's decision to invest 10% of Block's Bitcoin profits monthly signals a smart plan for the company's growth and technology. With Block's increasing focus on Bitcoin, like creating the Bitkey wallet and planning a full Bitcoin mining system, also working through Cash App are ways to evolve in the crypto market. Dorsey sees a future where old and new financial systems work together, making transactions easier worldwide. This commitment shows Block's leading role in shaping the future of money.
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