Jack Dorsey’s Block Deducts 10% Of Monthly Profits To Buy Bitcoin

Key Points:

• Jack Dorsey’s Block initiates monthly Bitcoin investments to expand its holdings in 2024.
• Q1 2024 sees Block’s Bitcoin gross profit soar by nearly 60% to $80.1 million.
• However, Block faces federal scrutiny over compliance amid allegations of processing questionable transactions.

Payments company Block, led by CEO Jack Dorsey, has launched a dollar-cost averaging (DCA) program to bolster its Bitcoin holdings.

Jack Dorsey’s Block Launches Monthly Bitcoin Investment Program

Beginning in April, Jack Dorsey’s Block allocates 10% of its monthly Bitcoin-related gross profit to purchase additional BTC, intending to continue this strategy throughout 2024.

This move aims to enhance its already substantial Bitcoin stack, totaling 8,038 BTC as of March 31, valued at approximately $573 million, with reported paper gains of $233 million.

Block’s Bitcoin gross profit surged nearly 60% year-on-year in the first quarter of 2024, reaching $80.1 million through customer sales via its Cash App business. This growth trajectory suggests potential additional Bitcoin purchases worth $24 million by year-end, based on current profits.

In addition to this initiative, Jack Dorsey’s Block released its “Bitcoin Blueprint For Corporate Balance Sheets,” outlining its acquisition process without significantly impacting the market, along with custodial, insurance, and accounting procedures for its holdings.

Dorsey affirmed the commitment to monthly Bitcoin investments, stating, “Each month, we will be investing 10% of our gross profit from Bitcoin products into Bitcoin purchases.”

Federal Scrutiny Intensifies as Block Faces Compliance Allegations

Block’s proactive approach towards cryptocurrency extends beyond investments as it continues to innovate within the sector. However, the company faces federal scrutiny over its crypto practices, with allegations of inadequate compliance measures, including processing transactions linked to sanctioned countries and terrorist organizations.

While Block’s Square devices and Cash App remain prominent consumer-facing products, its expanding Bitcoin empire underscores its success in the crypto market.