Connect with us

Hi, what are you looking for?


Block to Reinvest 10% of Profits into Bitcoin Each Month

Jack Dorsey-led Block announced plans to allocate 10% of profits from its Bitcoin products toward buying more of the cryptocurrency each month, its quarterly report published Thursday showed.

Block was one of the first public companies to add Bitcoin to its holdings in 2020. With an initial investment of $220m, its Bitcoin holdings have surged 160% to hit $573m by the end of Q1 in 2024.

“We believe the world needs an open protocol for money, one that’s not owned or controlled by any single entity,” CEO Dorsey company said in a letter to shareholders. He added that “bitcoin is the best and only candidate to be that protocol, and to ultimately become the native currency of the internet.”

Block currently allocates less than 3% of its resources to Bitcoin projects, Dorsey said.

In the first quarter, the payments firm’s gross profit grew 22% year-over-year to $2.09b. Net income quadrupled to $472m, or 74 cents per share, compared to $98.3m or 16 cents per share in the same quarter last year.

Meanwhile, Block raised its adjusted EBITDA forecast for the second quarter to $690m from $670m. The company also raised its annual adjusted core earnings guidance to at least $2.76b. This is up from its previous forecast of $2.63b.

These strong results and optimistic outlook sent the stock price 5% higher to close at $70.30 on Thursday.

Cash App Fuels Block’s Growth, Faces Potential Regulatory Heat

Block’s mobile payment platform, Cash App, continued to be a profit powerhouse. The unit generated $1.26b in gross profit, a 25% increase year-over-year.

However, the company faces a potential regulatory hurdle. Currently, federal prosecutors are investigating alleged compliance issues at Square and Cash App.

These concerns reportedly center on Block potentially failing to collect adequate customer information. The investigation is also looking at transactions from sanctioned countries and enabling crypto transactions for terrorist groups.

A former employee has claimed that thousands of transactions went unreported, suggesting a significant challenge for Block in the coming months.

Block Unveils Advanced Bitcoin Mining System

Block recently ramped up its Bitcoin mining efforts. It is transitioning from designing individual chips to developing a complete mining system.

The company finalized the design of a cutting-edge 3 nanometer Bitcoin mining chip and is now partnering with a major semiconductor foundry to bring it to life.

The post Block to Reinvest 10% of Profits into Bitcoin Each Month appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Pavel Durov, the founder of Telegram, has received a generous donation from over half a million players of the viral Telegram-based clicker game called...


The crypto industry has made a record $94 million in political donations since 2023 in an effort to support pro-crypto governance. According to a...


As the Floki (FLOKI) bulls eye a quick 50% rally from current levels around $0.00021 to yearly highs above $0.00031 after a key technical...


Bank of America (BAC) upgraded its rating on Coinbase (COIN) shares from underperform to neutral on Friday and raised its price target for Coinbase to...


In a major move, Turkey drafted a crypto bill, tabled by the ruling party (AK Party) Group Chairperson Abdullah Güler on May 16, to...


Hong Kong became the first region outside mainland China to allow users to open digital wallets and hold China’s CBDC e-CNY, otherwise known as...

You May Also Like

Financial Advisors


Financial Advisors


Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.