Block to Allocate 10% of Profits for Bitcoin Purchases Until Year-End

Jack Dorsey’s payment company Block has initiated the use of 10% of its monthly gross profit related to bitcoin for acquiring additional coins. This practice will extend through the end of 2024.

The firm is implementing a dollar-cost averaging strategy.

In the first quarter, Block’s gross profit from bitcoin sales amounted to $80 million (+59% compared to January-March 2023). If this figure holds steady through the year, the company will allocate $24 million for acquiring digital gold.

Block began establishing its position in the leading cryptocurrency in October 2020, allocating $50 million. In February 2021, the company further invested $170 million.

According to BitcoinTreasuries, Block’s holdings of 8027 BTC are valued at $476.9 million, with initial investments having increased by 2.17 times.

In May, it was revealed that the U.S. Federal Prosecutor’s Office was examining the financial operations of Block’s cryptocurrency divisions for compliance with regulations.

At the end of January, the company laid off over 1000 employees to streamline operations.