Tech
Block says Bitcoin holdings allow him to study the technology’s potential
A motivation for To blockInvesting in bitcoin is about learning about the technology and how to use it.
The company invests 10% of its gross profit from bitcoin products every month in purchasing more bitcoin; allocates less than 3% of its resources to bitcoin-related projects; and holds bitcoin on its balance sheet, Bloomberg reported Thursday (June 27).
“It helps us understand what it means to hold bitcoin, what it means for our treasury teams in the marketplace buying bitcoin.” Amrita AhujaBlock’s chief financial officer and chief operating officer, told Bloomberg Television on Thursday, according to reports.
Ahuja said during the interview that bitcoin could save consumers the fees they currently pay to access and move money, and the Block founder Jack Dorsey recently said the technology could “level the playing field” for Block and global consumers, according to the report.
In an interview on Thursday, Ahuja said, “We think Bitcoin is the most likely contender to realize that vision because it’s resilient, it’s battle-tested, it’s secure.”
In May, Block’s first-quarter results showed that its $200 million bitcoin investment it grew by approximately 160% and stood at $573 million at the end of the quarter.
In a letter to shareholders published at the time, Dorsey said: “We believe the world needs an open protocol for money, one that is not owned or controlled by a single entity. We believe bitcoin is the best and only candidate to be that protocol and to ultimately become the native currency of the Internet.”
In April, Block Ecosystems Square AND Cash Application has begun rolling out a feature that allows eligible Square sellers to convert automatically a portion of their daily sales in bitcoin with Cash App.
“Block believes that bitcoin is a tool for economic empowerment and provides a way for people around the world, including business owners, to participate in a global monetary system,” the company said in announcing the new feature.
The company added that Square sellers have expressed interest in Bitcoin and said that this cryptocurrency has a number of use cases, such as long-term savings and diversification of business holdings.