Block Inc, formerly known as Square and led by Jack Dorsey, announced its plan to reinvest 10% of its total Bitcoin-related profits back into Bitcoin.
This initiative comes as part of the company's new policy to deepen its presence in the cryptocurrency market, reflecting a strong belief in the value of Bitcoin as a primary digital currency.
On May 2, 2024, during an update to the company's shareholders, Dorsey presented his vision for Bitcoin as a native currency for the Internet.
He stressed the need for an open monetary protocol, emphasizing Bitcoin as a solution because it is characterized by its decentralized nature.
This approach is in line with Block's long-term vision for cryptocurrency and its vision as a vital component of the digital economy.
Block’s financial performance:
Block Inc. reported a significant increase in revenue during the first quarter, with the company's total profits reaching $2.09 billion, an increase of 22% from the previous year.
These results exceeded Wall Street expectations, leading to a 7.4% jump in the company's stock prices in after-hours trading.
This financial rise comes on the heels of the strong performance of the company's investments in Bitcoin, which grew 160% from an initial amount of $220 million to $573 million by the end of the first quarter.
The company revised its full-year EBIT forecast to $2.76 billion from $2.63 billion, strengthening expectations for positive financial results in the coming quarters.
This modification highlights how Block was able to seamlessly integrate Bitcoin transactions, which generate high margins, without any hiccups.
Posted Using InLeo Alpha