One of the motivations behind Block’s investment in bitcoin is to gain a deeper understanding of the technology and how to utilize it effectively. The company sets aside 10% of its gross profit from bitcoin products each month to purchase more bitcoin, allocates less than 3% of its resources to bitcoin-related projects, and holds bitcoin on its balance sheet. This investment strategy allows Block to learn about custodying bitcoin and the implications for their treasury teams when buying bitcoin.
In an interview with Bloomberg Television, Amrita Ahuja, the CFO and COO at Block, discussed how bitcoin could potentially save consumers from fees associated with accessing and moving money. Block’s founder, Jack Dorsey, also mentioned that bitcoin has the potential to level the playing field for both Block and global consumers. Ahuja emphasized that bitcoin is a resilient and secure technology that could enable their vision for a more efficient financial system.
Block’s first-quarter earnings results in May revealed that their $200 million investment in bitcoin had grown by around 160%, reaching $573 million at the end of the quarter. Dorsey, in a shareholder letter, expressed his belief that bitcoin is the best candidate to become the native currency of the internet, providing an open protocol for money that is not controlled by any single entity.
Recently, Square and Cash App, ecosystems within the Block network, introduced a feature that allows eligible Square sellers to automatically convert a portion of their daily sales into bitcoin using Cash App. Block sees bitcoin as a tool for economic empowerment, enabling people, including business owners, to partake in a global monetary system. Square sellers have shown interest in bitcoin for purposes such as long-term savings and diversifying their business holdings.