Jack Dorsey Announced His Company's Bitcoin Purchase Strategy.

Block's co-founder Jack Dorsey shared the company's plans to purchase Bitcoin in a statement addressed to shareholders, describing it as an investment in "a future where economic empowerment is widespread."

Twitter's co-founder Jack Dorsey announced that Block, the fintech firm, will allocate 10% of the gross profit generated from its Bitcoin products to purchase BTC every month.

In a shareholder letter dated May 2nd, Dorsey noted the better-than-expected first-quarter balance sheet and stated, "We will direct 10% of the gross profit we receive from our Bitcoin products to Bitcoin purchases every month." He also added, "We were one of the first publicly traded companies to put Bitcoin on our balance sheet." Block had purchased $220 million worth of BTC between the fourth quarter of 2020 and the first quarter of 2021.

Dorsey further emphasized, "The investment in Bitcoin goes beyond technology; it is an investment in a future where economic empowerment is the norm." According to the latest financial statement, Block held approximately 8,038 Bitcoins valued at around $573 million as of March 31, yielding a profit of $233 million from this investment.

During the first quarter of 2024, Block's Bitcoin gross profit from customer sales on Cash App increased by approximately 60% compared to the same period last year, reaching $80.1 million. Dorsey stated that he has dedicated a significant amount of time to Bitcoin as he believes in the need for an open protocol for money, and such a protocol could help Block serve "more people worldwide faster."

However, Dorsey also mentioned that "less than 3% of the company's resources are allocated to Bitcoin-related projects." In December 2023, Block released the Bitkey Bitcoin wallet and announced the development of a "complete Bitcoin mining system" to help alleviate challenges faced by miners after the Bitcoin halving, which reduced rewards by 50%, on April 23rd.

Lastly, Dorsey concluded, "The internet will become a local currency; it's just a matter of time. It won't happen overnight. Existing and developing financial systems will continue to operate in parallel for some time."

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