Block is investing in bitcoin for multiple reasons, including to learn about the technology and how to use it. The company invests 10% of its gross profit from bitcoin products each month into buying more bitcoin, allocates less than 3% of its resources to bitcoin-linked projects, and holds bitcoin on its own balance sheet. Amrita Ahuja, chief financial officer and chief operating officer at Block, stated in a Bloomberg Television interview that investing in bitcoin helps the company understand custody and treasury management. She also mentioned that bitcoin could save consumers money on fees and that the technology could level the playing field for Block and global consumers.
In a shareholder letter, Block founder Jack Dorsey expressed that they believe the world needs an open protocol for money not owned by any single entity. He stated that they believe bitcoin is the best candidate for this and could become the native currency of the internet. Block’s first-quarter earnings results showed that their $200 million investment in bitcoin grew by 160% to $573 million at the quarter’s end. Block believes in economic empowerment through bitcoin and offers Square sellers the ability to convert a portion of their daily sales to bitcoin with Cash App.
The company views bitcoin as a way for people, including business owners, to participate in the global monetary system. Square sellers have shown interest in bitcoin for various use cases like long-term savings and diversifying business holdings. Block is continuing to explore the potential of bitcoin and its benefits for both the company and its customers.