Block Inc., led by CEO Jack Dorsey, has announced its intention to invest a significant portion of its gross profit from Bitcoin (BTC) products into regular Bitcoin purchases. This initiative, outlined in a recent memo released by the company, aims to bolster its investment in the leading cryptocurrency.
Block Inc. revealed its Corporate Balance Sheet Dollar Cost Averaging (DCA) program, which entails dedicating 10% of the monthly gross profit generated from Bitcoin products towards Bitcoin investments. This commitment underscores the company’s confidence in the long-term value proposition of Bitcoin.
According to the memo, Block Inc. will execute these purchases through a Dollar Cost Averaging strategy, utilizing Time-Weighted Average Price (TWAP) orders. The program officially commenced in April 2024, showcasing Block Inc.’s proactive approach to capitalizing on Bitcoin’s potential as a store of value.
CEO Jack Dorsey emphasized the significance of this initiative in a post on [platform name], inviting other companies to adopt a similar approach. Dorsey shared Block Inc.’s “Bitcoin Blueprint for Corporate Balance Sheets,” providing insights into the company’s methodology and rationale.
The memo elaborated on the benefits of Dollar Cost Averaging, stating, “By allocating a portion of our monthly bitcoin gross profits to bitcoin investment on a predetermined and recurring cadence, we sidestep the challenges of market timing.” This approach mitigates the impact of Bitcoin’s volatility and ensures consistent accumulation over time.
Block Inc. has a history of significant Bitcoin acquisitions, with its first purchase totaling 4,709 BTC in October 2020, followed by an additional 3,000 BTC four months later. Presently, the company holds 8,038 bitcoins, representing approximately 9% of its total cash, cash equivalents, and marketable securities.
At current market prices, Block Inc.’s Bitcoin holdings exceed $489 million, underscoring its commitment to cryptocurrency as a strategic asset.
