Bitcoin

Block

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 <p class="paragraph">Block Inc. (NYSE: SQ), Square’s and Cash App’s parent company, and valued at $44 billion has raised its earnings forecast for the year and unveiled significant plans to expand its Bitcoin (BTC) holdings. The announcement led to a 7.9% surge in Block’s shares in post-market trading.</p>
 <p class="paragraph">In a <a rel="noopener noreferrer nofollow" title="letter" href="https://thebittimes.com/tag/letter.html">letter</a> to <a rel="noopener noreferrer nofollow" title="share" href="https://thebittimes.com/tag/share.html">share</a>holders, CEO <em>Jack Dorsey</em> stressed the importance of an “open protocol for money“ aligning with broader movements towards cryptocurrency acceptance.</p>
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  <p class="paragraph">“We believe the world needs an open protocol for money, one that’s not owned or controlled by any single entity,” Dorsey said in the note.</p>
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 <p class="paragraph">This approach is further validated by recent green lights from the Securities and Exchange Commission (SEC) for several Bitcoin ETFs, marking a&nbsp; shift towards institutional acceptance of cryptocurrencies</p>
 <p class="paragraph">To solidify this commitment, Block plans to allocate 10% of its gross profits from Bitcoin-related products to additional Bitcoin acquisitions each month. Currently, less than 3% of Block’s resources are invested in Bitcoin-related initiatives, a figure set to grow substantially.</p>
 <p class="paragraph">This strategic pivot is underscored by Block’s robust financial performance. The company has revised its annual adjusted core earnings forecast upwards from $2.63 billion to at least $2.76 billion, buoyed by strong U.S. consumer spending that defies fears of an economic slowdown. In the reported quarter, Block notched a 19% jump in total net revenue, reaching $5.96 billion.</p>
 <h2 class="wp-block-heading" id="h-operational-and-financial-highlights">Operational and financial highlights</h2>
 <p class="paragraph">Financially, Block reported a substantial increase in its operations, with gross profit rising to $2.09 billion, a 22% increase from the previous year. The company’s net income was notably robust, reporting $472 million, or 74 cents per share, a significant increase from $98.3 million, or 16 cents per share, a year earlier.</p>
 <p class="paragraph">The Cash App segment of Block’s business, a widely used mobile payment platform, reported a gross profit of $1.26 billion, marking a 25% year-over-year increase. The platform’s monthly active users for the Cash App Card rose to 24 million in March, with the total number of monthly transacting activities reaching 57 million, a 6% year-over-year increase.</p>
 <p class="paragraph">Moreover, Block has been focusing on integrating Afterpay, the buy now, pay later company it acquired for $29 billion in 2021. Although Afterpay experienced significant losses post-acquisition, this integration is a critical part of Block’s strategy to enhance its suite of financial products and services.</p>
 <h2 class="wp-block-heading" id="h-wall-street-s-mixed-views-on-block-s-valuation">Wall Street’s mixed views on Block’s valuation</h2>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="418" src="https://cdn.thebittimes.com/images/2024/05/12/743769d8751715c77bde2fab038cce35.webp" alt class="wp-image-175371" srcset="https://cdn.thebittimes.com/images/2024/05/12/743769d8751715c77bde2fab038cce35.webp 1024w, https://cdn.thebittimes.com/images/2024/05/12/743769d8751715c77bde2fab038cce35.webp 300w, https://cdn.thebittimes.com/images/2024/05/12/743769d8751715c77bde2fab038cce35.webp 768w, https://cdn.thebittimes.com/images/2024/05/12/743769d8751715c77bde2fab038cce35.webp 1518w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>SQ Analyst ratings. Source. tipranks</em>
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 <p class="paragraph">The investment community has expressed mixed views on Block’s financial outlook. According to 30 Wall Street analysts providing 12-month price targets in the last three months, the average price target stands at $90.42, with a high forecast of $100.00 and a low of $62.00.&nbsp;</p>
 <p class="paragraph">This range indicates a potential upside of 26.80% from the current <a rel="noopener noreferrer nofollow" title="share" href="https://thebittimes.com/tag/share.html">share</a> price of $71.31. These projections reflect varying degrees of confidence in Block’s strategic direction and its potential impact on the <a rel="noopener noreferrer nofollow" title="company’" href="https://thebittimes.com/tag/company.html">company’</a>s future profitability and market position.</p>
 <p class="paragraph">As Block continues to innovate and expand its financial products, the strategic emphasis on Bitcoin could not only redefine its growth trajectory but also influence broader market trends in digital currency and financial technology.</p>
 <p class="paragraph">This bold move could very well shape the future landscape of how technology giants engage with cryptocurrency, marking a pivotal moment in Block’s history.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/44-billion-company-s-ceo-makes-a-stand-for-bitcoin-in-letter-to-shareholders-tbt88088.html">https://thebittimes.com/44-billion-company-s-ceo-makes-a-stand-for-bitcoin-in-letter-to-shareholders-tbt88088.html</a></p>

$44 billion company’s CEO makes a stand for Bitcoin in letter to shareholders

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