Twitter co-founder Jack Dorsey said his fintech firm Block, Inc. will flip 10% of its gross profit made off its Bitcoin products into buying Bitcoin (BTC) every month.
“Going forward, each month we will be investing 10% of our gross profit from Bitcoin products into Bitcoin purchases,” Dorsey wrote in a May 2 shareholder letter inclusive of its better-than-expected first-quarter results.
“We were one of the first public companies to put Bitcoin on our balance sheet,” he added. Block bought $220 million worth of BTC across Q4 2020 and Q1 2021.
“Our investment in Bitcoin transcends technology; it is an investment in a future where economic empowerment is the norm.”
Its latest earnings detailed Block held 8,038 BTC as of March 31 — worth $573 million with reported paper gains of $233 million.
Block’s Bitcoin gross profit for the first quarter of 2024 through customer sales with its Cash App business was up nearly 60% year-on-year to $80.1 million. If the plan could buy it around 1,350 BTC at its current price of $59,250.
Its Bitcoin revenue — the sale amount of Bitcoin sold to Block customers — was up 26% year-on-year to $2.73 billion in Q1 which the firm said benefitted from the rising average market price of Bitcoin over the quarter.
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In the shareholder letter Dorsey addressed that he’s “spending so much time on Bitcoin” as he believed “the world needs an open protocol for money.”
He claimed such an open protocol could benefit Block by helping it “serve more people around the world faster.”
Dorsey added, however, that “less than 3% of company resources are dedicated to Bitcoin-related projects.”
The firm in December launched its Bitkey Bitcoin wallet and last week on April 23 said it was building a “full Bitcoin mining system” to help ease challenges faced by miners after the Bitcoin halving — which cut rewards by 50%.
“The internet will have a native currency; it’s just a matter of time,” Dorsey wrote. “This won’t happen overnight. The existing and emerging financial systems will operate in parallel for some time.”
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