Twitter co-founder Jack Dorsey said his fintech company Block, Inc. will put 10% of its gross profits from its Bitcoin products toward monthly Bitcoin (BTC) purchases.
“Going forward, we will invest 10% of our Bitcoin product gross profits each month into purchasing Bitcoin,” Dorsey wrote in his May 2 shareholder letter, which included better-than-expected first-quarter results.
“We were one of the first public companies to include Bitcoin on its balance sheet,” he added. Block purchased $220 million worth of BTC across the fourth quarter of 2020 and the first quarter of 2021.
“Our investment in Bitcoin goes beyond technology. “This is an investment in a future where economic empowerment is the norm.”
According to its latest earnings, Block held 8,038 BTC as of March 31, worth $573 million, with a reported paper profit of $233 million.
Total Bitcoin profits in the first quarter of 2024 from customer sales through Block’s Cash App business hit $80.1 million, up nearly 60% year-over-year. If the plan allows you to purchase approximately 1,350 BTC at the current price of $59,250.
Bitcoin revenue, which is the amount of Bitcoin sold to Block customers, increased 26% year over year to $2.73 billion in the first quarter, benefiting from the rise in the average market price of Bitcoin during the quarter. He said he had obtained it.
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In his shareholder letter, Dorsey said he is “spending too much time on Bitcoin” because he believes “the world needs an open protocol for money.”
He argued that such an open protocol could benefit Block by “serving more people around the world, faster.”
However, Dorsey added that “less than 3% of the company’s resources are dedicated to Bitcoin-related projects.”
The company launched the BitKey Bitcoin wallet last December, and last week on April 23 it launched a “full Bitcoin” to ease the difficulties faced by miners following the Bitcoin halving, which saw rewards cut by 50%. They announced that they are building a “mining system.”
“The Internet will have its own 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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