PANews reported on June 28 that according to Bloomberg, Block Inc. Chief Financial Officer and Chief Operating Officer Amrita Ahuja said that Block Inc.'s investment in Bitcoin allows the company to gain a deeper understanding of this potentially "potentially transformative" technology, and the company's investment in Bitcoin is a long-term strategy. Block said earlier this year that it would use 10% of the gross profit generated by Bitcoin products each month to purchase cryptocurrencies.
"We are at the forefront of a future where money will flow at the speed of the internet. Bitcoin is the most powerful contender for this vision because of its resilience, battle-testedness and security," Ahuja said in an interview. She further pointed out that consumer groups that suffer from underserved services due to high deposit, withdrawal and transfer fees may usher in changes with the emergence of Bitcoin. Block has adopted a unique strategy of holding Bitcoin directly on its own balance sheet. Ahuja said that this approach has helped the company gain a deep understanding of Bitcoin technology, including how Bitcoin is kept and the working mechanism of the finance team purchasing Bitcoin in the market.
In a recent letter to shareholders, Block founder Jack Dorsey stressed that Bitcoin has the potential to "level the playing field" for Block and global consumers. He revealed that the company currently invests less than 3% of its resources in Bitcoin-related projects. As the parent company of Square, Cash App, and startups TBD and Spiral, Block's earnings before interest, taxes, depreciation and amortization (Ebitda) in the first quarter almost doubled from the same period last year.
