Block, formerly known as Square Inc., detailed its months-long plan on Thursday's earnings call to buy Bitcoin with 10% of its gross profits from Bitcoin-related products and services.
“In April, Block implemented a Bitcoin dollar-cost averaging (DCA) purchase program that runs through 2024,” the company said in a statement. blog post. “Under this program, Block will invest 10% of its gross profits from Bitcoin products into Bitcoin purchases.”
The company said in a so-called document that acquiring Bitcoin each month is a “principled investment approach” rather than “buying Bitcoin in bulk.” corporate blueprintoutlines how Block Bitcoin will be stored, insured, and accounted for until 2024.
Meanwhile, the company founded by Twitter co-founder Jack Dorsey is report Gross profit for the first quarter was $2 billion, an increase of 22% from the same period last year. Revenue for the first quarter reached nearly $6 billion, an increase of 19% year-over-year.
A significant portion of Block's first quarter revenue came from Bitcoin sold to customers, totaling $2.7 billion. Block not only allows users of payment app Cash App to buy Bitcoin; Custody wallet BitKey and a special chip for cryptocurrency miners.
The company's new approach to Bitcoin is service Last month, companies Convert up to 10% of your revenue It will be automatically converted to Bitcoin. Leveraging Block's Square and Cash App in conjunction, the company charges businesses his 1% commission on every dollar of their daily sales converted to Bitcoin.
From coffee shops to street vendors, Square's business technology platform supports more than 4 million merchants. process Last year, the amount paid was $209 billion. In the first quarter, Square processed $50 billion in transaction value, an increase of 7% year over year, Block reported.
Block stock soared as much as 9% to $76.59 after earnings, but the company's stock price has settled at $72.17 on Friday as of this writing. Shares plunged to $66.17 on Wednesday, down more than 3% over the past week, following reports that U.S. prosecutors are investigating Mr. Bullock's Bitcoin operations. Suspected compliance violation.
Michael Saylor, MicroStrategy Founder and Chairman highlighted Bitcoin movements on Mr. Block's Twitter.As a place to hide Bitcoins $14.5 billionSoftware development company MicroStrategy has grown to become the largest Bitcoin holding company since it first purchased Bitcoin in 2020.
MicroStrategy's 214,000 Bitcoin treasure trove has been accumulated through over 30 purchases. But prior to Thursday's announcement, Dorsey's block had only purchased Bitcoin twice, despite being an early adopter among Wall Street-traded companies.
Block scoops 4,700 Bitcoins at average price of $10,600 bring up Bitcoin was on its balance sheet less than two months after MicroStrategy put it on its balance sheet. I purchased the follow up In early 2021, Block dropped another 3,300 Bitcoins for $220 million.
The stash of blocks, totaling around 8,000 BTC, ranks seventh among publicly traded companies holding this asset, including several crypto miners, cryptocurrency exchange Coinbase (9,480 BTC), and Elon Musk. It is said to be second only to his Tesla (9,720 BTC). Bitcoin government bonds data.
Edited by Andrew Hayward
