Jack Dorsey Says He Will Invest More in Bitcoin
The Twitter founder Block plans to purchase Bitcoin monthly, allocating 10% of its gross profit from BTCn products
May 3, 2024 02:12 AM
Reading time: 1 minute, 7 seconds
TL;DR Block Inc., led by Jack Dorsey, reported a first-quarter earnings beat, announcing plans to invest in Bitcoin monthly using profits from Bitcoin products. Amid its financial success, the company faces scrutiny over compliance issues related to crypto services.
Block (SQ) shares surged in the after-hours session Thursday following a first-quarter earnings report that surpassed analysts' expectations.
The company outperformed Wall Street's forecasts with adjusted earnings of 85 cents per share and revenue of $5.97 billion. A 22% gross profit increase from the previous year highlighted its financial strength.
Investing in Bitcoin
In a bold move, Jack Dorsey announced Block's plan to purchase Bitcoin monthly, allocating 10% of its gross profit from Bitcoin products. This strategy is part of Block's vision to support Bitcoin as the internet's native currency, emphasizing the need for an open money protocol.
The company's original $220 million Bitcoin investment has grown by approximately 160%, showcasing the potential of this digital asset.
Compliance Scrutiny
However, Block's crypto endeavors have attracted federal investigation over non-compliant services, with allegations of inadequate customer information collection and processing transactions for sanctioned countries.
The scrutiny highlights the regulatory challenges Block faces while striving to innovate in the digital currency space.
"We believe the world needs an open protocol for money, not owned or controlled by any single entity."
Block's Cash App unit saw a 25% profit growth, driven by diverse offerings, including Bitcoin products. Meanwhile, developing a three-nanometer Bitcoin mining chip marks a significant step towards decentralized mining.
Despite these advancements, the company must navigate the complexities of regulatory compliance to ensure its innovative efforts stay within legal boundaries.