Block to Invest 10% of Bitcoin Profits into BTC Each Month for the Rest of 2024
Block announced its Q1 2024 financial results and unveiled a strategic plan to invest 10% of its gross profit from bitcoin products into bitcoin purchases on a monthly basis until the end of the year.
- Block posted its Q1 2024 results showing revenues of $5.96 billion, up 19% year over year. Excluding bitcoin revenue, revenue was $3.23 billion, up 14% year over year.
"We delivered strong results across the company during the first quarter. Gross profit was $2.09 billion, up 22% year over year, consistent with the fourth quarter. Adjusted EBITDA was $705 million, nearly doubling year over year, and Adjusted Operating Income was $364 million, up 7x year over year," said Amrita Ahuja, the company's COO and CFO.
- "Cash App generated $80 million of bitcoin gross profit in the first quarter of 2024, up 59% year over year. The total sale amount of bitcoin sold to customers, which we recognize as bitcoin revenue, was $2.73 billion, up 26% year over year," the firm said in its shareholder letter.
- The company added that the growth in these bitcoin numbers was driven by a pricing change made in the prior quarter, bitcoin inventory price appreciation, and an increase in the average market price of bitcoin.
- Block also announced a strategic investment into bitcoin. In April, the company implemented a bitcoin dollar cost average (DCA) purchase program that will run through 2024. Under the program, Block will be investing 10% of its gross profit from bitcoin products into bitcoin purchases.
"Block, Inc. views bitcoin as an instrument of global economic empowerment; it is a way for individuals around the world to participate in a global monetary system and secure their own financial future," states the company in its Bitcoin Blueprint for Corporate Balance Sheets.
- The company currently holds 8027 BTC on its balance sheet, per BitcoinTreasuries.net.
- Recently, Block also launched Square’s Bitcoin Conversions product, which allows merchants to automatically convert a portion of their sales into bitcoin holdings.
- A couple of weeks ago, Block also unveiled plans to offer both a standalone 3nm Bitcoin mining chip, and a comprehensive mining system developed by the company.
