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Block, formerly known as Square, Inc, detailed its months-long plan to buy bitcoin with 10% of its total revenue from bitcoin-related products and services in its earnings call Thursday.
“Last April, Block implemented a Bitcoin Dollar Cost Average (DCA) purchasing program that will run until 2024,” the company said. blog post. “Under this program, Block will invest 10% of its total profits from Bitcoin products into Bitcoin purchases.”
Acquiring Bitcoin on a monthly basis is closer to a “disciplined investment approach” than “buying Bitcoin in bulk,” the company said. corporate blueprintIt outlines how Bitcoin on the Block will be stored, secured, and accounted for through 2024.
Meanwhile, the company founded by Twitter co-founder Jack Dorsey reported Total profit in the first quarter was $2 billion, an increase of 22% compared to the same period last year. First quarter revenue was approximately $6 billion, up 19% year-over-year.
A significant portion of Block’s first quarter revenue came from bitcoin sold to customers, totaling $2.7 billion. In addition to allowing users of its payment app, Cash App, to purchase Bitcoin, Block also offers the following features: Custodial Wallet BitKey This is a special chip for cryptocurrency miners.
The company’s new commitments to Bitcoin include: service Last month, the company Convert up to 10% of your profits Automatically with Bitcoin. Using Block’s Square and Cash App together, the company charges the company a 1% fee for each daily sale converted to Bitcoin.
From coffee shops to street vendors, Square’s business technology platform powers more than 4 million merchants. process Last year’s payment was $209 billion. Block reported that Square processed $50 billion in transactions in the first quarter, a 7% increase over the same period last year.
Block shares rose as much as 9% to $76.59 after the earnings, but as of this writing, the company’s shares closed at $72.17 on Friday. The stock plunged to $66.17 on Wednesday, down more than 3% over the past week, amid reports that U.S. prosecutors are investigating Block’s Bitcoin business. Suspicion of violation of regulations.
Michael Saylor, MicroStrategy Founder and Chairman highlighted Bitcoin movement on Twitter from the block. Bitcoin stash value $14.5 billionSoftware development company MicroStrategy has grown to become the largest corporate holder of Bitcoin since making its first purchase in 2020.
MicroStrategy’s 214,000 Bitcoin was accumulated over the course of over 30 purchases. But before Thursday’s announcement, Dorsey’s Block had only purchased bitcoin twice, despite being an early adopter among Wall Street trading firms.
Block mined 4,700 Bitcoins at an average price of $10,600 brought it Less than two months after MicroStrategy was placed on its balance sheet, Bitcoin was placed on its balance sheet. Purchase details are as follows: follow up In early 2021, when the block shed $220 million in another 3,300 bitcoins.
The block’s stash, totaling approximately 8,000 BTC, ranks seventh among publicly traded companies holding the asset, behind only cryptocurrency exchange Coinbase (9,480 BTC) and Elon Musk’s Tesla (9,720 BTC), followed by several cryptocurrency miners. It ranked 7th after the company. Bitcoin Treasury Bonds data.
Editor: Andrew Hayward
