Jack Dorsey’s Block (SQ) Q1 2024 Shareholder Letter; Doubles Down on Bitcoin
Jack Dorsey has certainly been an avid believer in Bitcoin and blockchain technology. His recent letter to Block Inc. shareholders keeps living up to his firm belief in a future where Bitcoin’s use cases are well refined. In his statement, Jack says he strongly believes the internet will have a native currency, and it’s just a matter of time before it’s achieved.
In his Shareholder letter, Jack Dorsey expresses his ambitions for Bitcoin and Block. According to him, making Bitcoin more usable every day means seeing Bitcoin as a medium of exchange, realizing Satoshi Nakamoto’s original dream for the cryptocurrency.
Jack Dorsey’s Block Inc. has always been heavily involved with Bitcoin and Blockchain technology. In the Q1 Shareholder’s letter, Dorsey defends Block’s interests in Bitcoin, saying that the company spends a lot of time on Bitcoin because it believes the world needs an open protocol for money, one that isn’t owned or controlled by any single entity.
Block has since been deeply involved in developing the open protocol to help serve more people around the world. Dorsey dubbed down on Bitcoin, saying unlike other cryptocurrencies, Block is focused on Bitcoin because of its capabilities and intended use case. Other cryptocurrencies in the market seek to solve different problems that are not aligned with Block Inc.’s mission.
Jack Dorsey’s Block Inc. Plans for Bitcoin
In 2018, Block became the first publicly listed company to offer a Bitcoin product. Since then, the company has focused on making Bitcoin accessible, more secure, and usable on a daily basis. Jack Dorsey said these three core directives have been the company’s main focus since.
Guided by the three core directives, Block Inc. built a simple app called Cash App that allows users to buy, sell, and withdraw Bitcoin. As a result of a successful launch, the app has generated 3.3% and 4.2% of Block’s gross profits in 2022 and 2023, with only 0.7% of related expenses.
Jack closed his Shareholders’ letter with a huge announcement for the Bitcoin community, saying that, going forward, Block will be investing 10% of its gross profits from Bitcoin products into Bitcoin purchases each month. The Dollar-Cost Averaging approach will minimize the impact of volatility on Block’s Bitcoin assets.
The company, in general, has had a good run with Bitcoin, being one of the first to incorporate BTC into its balance sheets. Jack Dorsey revealed Block’s Bitcoin holdings have more than doubled (160%) from $220 million initially invested to the current net value of $573 million.
