Payments company Block (NYSE:SQ), led by CEO Jack Dorsey, has launched a dollar-cost averaging plan to increase its significant Bitcoin holdings. Since April, the company has allocated 10% of its monthly Bitcoin-related gross profits to purchasing additional Bitcoin, and plans to continue this practice throughout 2024.
During the first quarter, Block reported Bitcoin gross profits of $80 million. If these levels persist for the remainder of the year, the company will have amassed approximately $24 million worth of Bitcoin under the program, further strengthening its balance sheet.
Block already holds a significant amount of Bitcoin, acquiring 4,709 Bitcoin in October 2020 and an additional 3,318 tokens in early 2021. With Bitcoin’s current price hovering around $59,000, these holdings are worth about $4.7 billion.
In addition to this initiative, Block also launched the Bitcoin Blueprint for Corporate Balance Sheets. This blueprint outlines the methodology behind large-scale cryptocurrency acquisitions, detailing how companies can acquire significant amounts of cryptocurrency without causing significant market volatility. It also describes Block’s processes for storing, insuring, and accounting for these holdings.
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