Jack Dorsey, the founder of Twitter, announced today in the Q1 financial report of his payment giant Block that they plan to use 10% of the gross profit from their Bitcoin product to buy Bitcoin every month in the future. This move further promotes the financial technology group’s investment of hundreds of millions of dollars in Bitcoin.
Jack Dorsey made this announcement in a shareholder letter when Block released its Q1 financial report. According to the report, Block’s Bitcoin revenue (BTC sold to customers) in the first quarter was $2.731 billion, accounting for about 45% of its total revenue of $6 billion. The gross profit of its Bitcoin product recorded $80.11 million in Q1, a year-on-year increase of 59%, and the overall gross profit was nearly $2.1 billion, a year-on-year increase of 22%.
If the gross profit for the remaining quarters of this year remains at around $80 million, it is estimated that Block is expected to purchase an additional $24 million worth of Bitcoin this year, calculated at the Bitcoin price of $59,660 before the deadline, which is approximately 402 BTC.
Block’s Q1 2024 Bitcoin revenue and gross profit. Source: Block
Block stated that they are one of the first publicly traded companies to include Bitcoin on their balance sheet. They have invested a total of $220 million to purchase Bitcoin and currently hold about 8,038 BTC, making them the seventh-largest holder of Bitcoin among US listed companies.
By the end of the first quarter, this investment had grown by about 160% to $573 million, but based on the current Bitcoin price, the value of their Bitcoin holdings is about $480 million, with a current unrealized gain of $260 million. After the release of the financial report, Block’s stock price rose more than 7.75% in after-hours trading today, reaching $75.75, with a closing price of about $70.3 per share on Thursday.
Jack Dorsey: Bitcoin will eventually become the native currency of the internet
In addition, it is worth noting that in Jack Dorsey’s shareholder letter this time, the entire focus was on explaining why Block is spending so much time on Bitcoin. As a staunch believer in Bitcoin, he stated:
Block’s optimism about Bitcoin is also reflected in their recent actions. In late April, Block announced a new program that allows merchants using Square services to transfer 1-10% of their daily sales to their Cash App accounts and convert it into Bitcoin. Last month, the company also announced the completion of the development of 3-nanometer Bitcoin mining chips and its goal of providing independent Bitcoin mining chips and its own complete mining system to achieve its vision of strengthening the decentralization of Bitcoin mining.
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