Jack Dorsey’s Block transitions to dollar-cost averaging strategy for Bitcoin investments

**Block, Inc. Implements Dollar Cost Averaging Strategy to Expand Bitcoin Holdings**

In a bold move to increase its Bitcoin holdings, Block, the payments firm led by CEO Jack Dorsey, has initiated a dollar cost averaging (DCA) program. This strategy, outlined in a shareholder letter dated May 2, involves allocating 10% of the company’s monthly gross profit from Bitcoin-related products to purchase additional Bitcoin. The program, which began in April, is set to continue throughout the remainder of 2024.

**Mainstream Acceptance of Bitcoin**

The decision by Block, Inc. to ramp up its Bitcoin investments comes amidst a growing acceptance of the cryptocurrency as a mainstream investment option. This shift was further highlighted by the Securities and Exchange Commission’s approval of several Bitcoin exchange-traded funds in January. CEO Jack Dorsey emphasized the company’s commitment to investing in Bitcoin, stating, “We believe the world needs an open protocol for money, one that’s not owned or controlled by any single entity…Our investment in Bitcoin transcends technology; it is an investment in a future where economic empowerment is the norm.”

**Impressive Growth in Bitcoin Holdings**

Block, Inc. has a history of investing in Bitcoin, with notable purchases in October 2020 and February 2021. As of March 31, 2024, the company reported owning 8,038 BTC valued at $573 million, with paper gains amounting to $233 million. Despite these gains, Block’s shares have declined by 9% this year, with additional pressures stemming from reports of Federal prosecutors investigating the company’s internal compliance structures and its handling of transactions involving sanctioned countries.

**Future Outlook**

Despite the challenges faced by Block, the company remains optimistic about its future earnings. It has updated its earnings expectations, forecasting annual adjusted core earnings of at least $2.76 billion, an increase from the previously projected $2.63 billion. With its continued focus on Bitcoin investments and a commitment to financial empowerment, Block, Inc. is poised for further growth in the evolving cryptocurrency landscape.


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