PANews November 8 news, according to CoinDesk, Block, a payment company owned by Jack Dorsey (formerly known as Square), announced that it will increase investment in Bitcoin mining equipment and the self-custody wallet Bitkey, while reducing investment in the music streaming platform Tidal and terminating the development of the decentralized internet project 'Web5'. This decision comes at a time when Trump has won the U.S. presidential election, promising to support the cryptocurrency industry in the U.S., which is a positive for the Bitcoin mining industry that has been struggling with profits post-halving.
Block stated in its third-quarter shareholder letter that it will focus resources on the development of Bitcoin mining equipment and the expansion of the self-custody wallet Bitkey. The company completed the development of 3-nanometer Bitcoin mining chips in April this year, with major clients including large mining company Core Scientific. Bitkey began shipping in March and can connect to Block's Cash App and Coinbase trading platform, supporting Bitcoin transactions.
Block's restructuring measures come alongside the disclosure of its financial report, with third-quarter revenue of $5.98 billion, below the market expectation of $6.24 billion, leading to a drop in stock price of about 10%.
