⬛ Block, led by Jack Dorsey, devoted a large portion of their latest shareholder letter to Bitcoin, addressing the question: "Why the hell are you all spending so much time on Bitcoin?" Here's a summary of their perspective:
• Resource Allocation: Less than 3% of their resources are dedicated to Bitcoin projects, fully funded by profits from their Bitcoin exchange.
• Profit Stream: Bitcoin is Cash App’s 4th largest gross profit contributor. Bitcoin products generated 3.3% and 4.2% of Block’s gross profit in 2022 and 2023, with only 0.7% of related expenses.
Block believes the world needs an open protocol for money, not controlled by any single entity. They see Bitcoin as the best candidate, potentially becoming the native currency of the internet. In 2018, they became the first public company to offer a bitcoin product.
🥅 Strategic Goals:
• Make bitcoin accessible.
• Ensure security.
• Enable daily usability.
Key Initiatives:
• Integrated bitcoin into Cash App, with over 21M users engaging with their Bitcoin products.
• Launched Bitcoin Round Ups and Paid in Bitcoin, converting spare change and direct deposits into bitcoin.
• Developing advanced bitcoin mining hardware, including a 3-nanometer ASIC chip, to decentralize and secure the network.
• Invested $220M in bitcoin, now worth approximately $573M. Planning to invest 10% of monthly gross profit from bitcoin products into further bitcoin purchases.
• Funding towards open source teams like Spiral, who work on initiatives like the Lightning Development Kit and Bitcoin Development Kit, supporting over 50 developers globally.
Block foresees the internet having a native currency, enabling seamless transactions and micropayments, reducing national border constraints, and eliminating gatekeepers. AI systems will transact using a common money protocol, enhancing global commerce and creativity.