Jack Dorsey's company Block will buy Bitcoin every month.
Jack Dorsey has committed to increasing his software development and payment solutions company Block's Bitcoin reserves, investing the 10% of monthly net profits in this cryptocurrency.
With this, Dorsey announces the launch of a recurring purchase strategy or DCA of the main cryptocurrency on the market, which is already part of the treasury reserves of large companies such as MicroStrategy, Tesla, Marathon Digital, Metaplanet, Beck & Bulow, among others.
Block will buy new bitcoins every month
Block, which ranks as the eighth public company with Bitcoin reserves, currently owns 8.027 BTC, valued at about $480 million dollars, at the time of writing this article. However, these reserves will begin to increase each month, with the recurring BTC purchases announced by Dorsey.
The plan to increase Block's Bitcoin holdings each month coincides with the release of the company's financial results for the last quarter, which were better than expected. According to the earnings report, Block's revenue increased significantly in the first quarter (Q1) of 2024, recording a gross profit of $2.090 billion. This represents an increase of 22% compared to the first quarter of 2023. In addition, the excellent results achieved by Block in Q1 impacted the share price, which rose more than 7% on Thursday.
On the other hand, Dorsey, who is also dedicated to the development of Bitcoin, highlighted that Block has been one of the first public companies to invest in Bitcoin, in 2021, and that its confidence in the market-leading cryptocurrency goes far beyond technology. “It is an investment in a future where economic empowerment is the norm”said the American businessman and developer.
Dorsey invites other companies to adopt Bitcoin
In addition to announcing his DCA strategy to acquire more bitcoins, Dorsey has also laid out a plan for other companies to follow suit and get their hands on the leading cryptocurrency.
Through X, the social platform of which Dorsey was CEO before being purchased by Elon Musk, he shared a document that can help other companies adopt Bitcoin as a treasury asset and store of value. This Valid identity document It was presented as a guide on the strategy implemented by Block to buy bitcoins.
In the document, Dorsey presents his BTC investment strategy in detail, including the historical execution of cryptocurrency purchases, as well as the storage, security and accounting mechanisms he uses. The document also introduces Square's Bitcoin Conversions, a product that allows some users to enable the conversion of dollars to Bitcoin automatically.
All this was announced after rumors spread about an alleged ongoing investigation against the company. According to NBC, prosecutors in the Southern District of New York are investigating Block for possible compliance failures, which could have allowed the company to process cryptocurrency financial transactions in sanctioned countries.
Continue reading: BlackRock: Financial Institutions Evaluate Participation in Bitcoin ETF
