Topline

Block, the parent company of Cash App, has announced a groundbreaking move in the world of cryptocurrency. In its first quarter earnings report, Block revealed that it will be investing 10% of its gross profit from bitcoin products into bitcoin purchases. This decision comes as part of the company’s continued investment in the cryptocurrency, with over $573 million already invested in bitcoin as of the end of the first quarter.

The earnings report also highlighted the success of Block’s bitcoin products, which generated 3.3% and 4.2% of the company’s gross profit in 2022 and 2023, respectively. In the first quarter alone, Block’s bitcoin gross profit totaled $80 million, a 59% increase year-over-year. This growth was attributed to the price appreciation of its bitcoin inventory and an increase in the price of bitcoin during the quarter.

Jack Dorsey, the ex-Twitter owner and Block chief, expressed his belief in the future of bitcoin, stating that less than 3% of the company’s resources are currently allocated to bitcoin-related projects. He envisions bitcoin becoming the native currency of the internet.

The news of Block’s investment in bitcoin has already had a positive impact on the company’s stock, with shares jumping more than 7% in after-hours trading. With Block’s continued commitment to cryptocurrency and the success of its bitcoin products, the fintech conglomerate is poised for further growth in the digital currency space.