Jack Dorsey, co-founder of Company X and head of the financial technology group Block, explained that Bitcoin is the best and only option for decentralized open protocols for Internet transactions. Block has decided to reinvest 10% of the company's profits from all Bitcoin-related products into Bitcoin, forming a mechanism for buying Bitcoin every month.
During the first quarter 2024 earnings call, Dorsey laid out multiple reasons for the decision to shareholders, which also responded to investors' concerns about why Block is so focused on Bitcoin, the largest cryptocurrency by market value.
Block's Bitcoin Monthly Investment Plan
Dorsey believes that Bitcoin is not only the best, but also the only decentralized open protocol suitable as a currency, which is what the world urgently needs. He foresees that Bitcoin will eventually become the universal currency of the Internet and help global users to trade at a faster speed without having to adapt to hundreds of different payment schemes and intermediaries.
Block also plans to improve Bitcoin’s usability for everyday transactions, using the cryptocurrency as a medium for internet transactions, thereby solving the original problem posed by Bitcoin’s anonymous creator Satoshi Nakamoto in his project’s white paper.
The problem that Satoshi Nakamoto raised in the white paper was the lack of an electronic payment system based on cryptographic proof rather than trust, which would allow two parties who want to transact to transact directly over the Internet without the intervention of a third party.
Dorsey believes it’s only a matter of time before the internet, including AI systems and agents, has its own native currency, and that Bitcoin is the most efficient protocol to achieve this.
He further stated: “Our investment in Bitcoin goes beyond technology, both historically and going forward; it is an investment in a future where economic empowerment is the norm. This commitment drives our business into new areas, unlocks new opportunities for our customers, and secures lasting value for our shareholders.”
Block's first quarter revenue exceeds expectations
In addition to its monthly Bitcoin purchases, Block is also developing Bitcoin mining hardware, including a mining machine system and a three-nanometer ASIC mining chip.
To date, Block has invested $220 million in Bitcoin, and as of the end of the first quarter of 2024, this investment has grown by approximately 160% to $537 million.
Meanwhile, Blockchain's revenue in the first quarter of 2024 reached $5.96 billion, beating Wall Street analysts' estimate of $5.75 billion by 3.54%. The company's gross profit increased 22% year-on-year to $2.09 billion, while its mobile payment and crypto platform Cash App's gross profit increased 25% year-on-year to $1.26 billion. #Block #BTC
