Bitcoin

Block

when

April

Block Inc., led by Twitter co-founder Jack Dorsey, has unveiled a new initiative to invest in Bitcoin on a monthly basis, utilizing a portion of its gross profit from Bitcoin products. This move comes as part of the company’s corporate balance sheet dollar-cost averaging (DCA) program.
In a<a href="https://s29.q4cdn.com/628966176/files/doc_financials/2024/q1/Shareholder-Letter_1Q24_Block.pdf" rel="noopener noreferrer nofollow"> memo</a> released today, Block shared details of its DCA program, stating that it will allocate 10% of its monthly gross profit from Bitcoin products into purchasing Bitcoin for investment purposes.&nbsp;
<h2 id="span-style-font-weight-400-block-to-buy-btc-span">Block to Buy BTC</h2>
Dorsey, in a<a href="https://twitter.com/jack/status/1786129834080419953" rel="noopener noreferrer nofollow"> post</a> on X, highlighted this strategy and encouraged other companies to adopt similar practices. He shared a link to Block’s “Bitcoin Blueprint for Corporate Balance Sheets,” outlining the process.
The blueprint reveals that Block plans to execute its Bitcoin purchases on a monthly basis using Time-Weighted Average Price (TWAP) orders, a method aimed at reducing market impact. This program commenced in April 2024.
<h3 id="span-style-font-weight-400-explaining-the-reason-span">Explaining the Reason</h3>
Explaining the rationale behind the initiative, Block’s memo emphasizes the challenges of<a href="https://thecoinrise.com/coinbase-ceo-talks-about-existing-fear-and-volatility-of-crypto/" rel="noopener noreferrer nofollow"> market timing in the highly volatile Bitcoin market</a>.&nbsp;
“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,” the memo states.
<h2 id="span-style-font-weight-400-block-and-bitcoin-go-way-back-span">Block and Bitcoin Go Way Back</h2>
Block’s involvement in Bitcoin dates back to October 2020, when the company made its first Bitcoin purchase of 4,709 BTC. Over the following months, Block<a href="https://thecoinrise.com/block-announces-development-of-bitcoin-mining-system/" rel="noopener noreferrer nofollow"> continued to invest in the BTC ecosystem</a>, adding over 3,000 more BTC to its portfolio.&nbsp;
As of now, Block holds 8,038 bitcoins, representing approximately 9% of the company’s total cash, cash equivalents, and marketable securities. At the current price, Block’s Bitcoin stash is valued at over $489 million.
<h3 id="span-style-font-weight-400-a-growing-trend-span">A Growing Trend</h3>
This move by Block underscores a growing trend among companies to diversify their corporate treasuries by investing in Bitcoin. As Bitcoin continues to gain mainstream acceptance as a store of value and an inflation hedge, more companies are exploring ways to integrate it into their financial strategies.&nbsp;
It is important to note that<a href="https://thecoinrise.com/block-under-investigation-from-us-prosecutors-report/" rel="noopener noreferrer nofollow"> Block is currently being investigated by US prosecutors</a> after a whistleblower surfaced documents alleging ongoing and widespread compliance violations at the firm’s payment arms, Square and Cash App.
Block’s DCA program sets an example for others to follow, providing a systematic approach to Bitcoin investment amidst market volatility.
The post <a href="https://thecoinrise.com/block-inc-announces-a-monthly-bitcoin-purchase-plan/" rel="noopener noreferrer nofollow">Block Inc. Announces a Monthly Bitcoin Purchase Plan</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Block Inc. Announces a Monthly Bitcoin Purchase Plan

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