Here’s why Jack Dorsey’s blog will invest 10% of Bitcoin profits into BTC monthly

Financial technology conglomerate Block, owned by X co-founder Jack Dorsey, has decided to invest 10% of all profits made from bitcoin-related products into monthly purchases of BTC.

Speaking to shareholders in a Q1 2024 earnings report, Dorsey laid out several reasons for the decision, addressing investor concerns about why Block is so focused on the largest cryptocurrency.

Blog to invest in Bitcoin monthly

Dorsey explained that bitcoin is the best and only candidate for a decentralized open protocol of money, which the world needs. BTC would eventually become the native currency of the Internet and help serve users around the world faster without the need to customize hundreds of payment schemes and intermediaries.

Block also intends to make BTC more usable for everyday transactions, using the cryptocurrency as a medium of exchange for the Internet and solving the original problem, pseudonymous creator Satoshi Nakamoto, stated in the project’s white paper.

The problem Nakamoto mentions in the white paper is the lack of an electronic payment system based on cryptographic evidence rather than trust that would allow two willing parties to transact directly over the Internet without the need for a third party.

Dorsey believes it was only a matter of time before the Internet, including artificial intelligence systems and agents, had a native currency, and the most efficient protocol for that was Bitcoin.

“Historically and going forward, our investment in bitcoin transcends technology; it is an investment in a future where economic empowerment is the norm. This commitment propels our business into new territories, unlocks new opportunities for our customers and ensures lasting value for you, our shareholders,” Dorsey said.

The block’s first-quarter revenue beats estimates

In addition to making monthly BTC purchases, Block is building Bitcoin mining hardware, including a mining platform system and a three-nanometer ASIC mining chip.

To date, Block has committed $220 million to BTC, and by the end of the first quarter of 2024, the investment had grown approximately 160% to $537 million.

Meanwhile, Block’s Q1 2024 revenue of $5.96 billion beat Wall Street analysts’ estimate of $5.75 billion by 3.54%. The company’s gross profit grew 22% year-on-year (y-o-y) to $2.09 billion, and its mobile payments platform and crypto platform Cash App posted a 25% year-over-year increase in gross profit to 1.26 billion dollars.

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