Jack Dorsey’s financial technology firm, Block (formerly Square), is doubling down on its commitment to Bitcoin. Following the recent election results, the company has announced plans to significantly increase its investments in Bitcoin mining and its self-custody wallet, Bitkey.
Bitcoin Mining Focus
Block’s third-quarter shareholder letter highlighted the strong demand for its Bitcoin mining initiative, aligning with the recent political climate that supports the U.S. becoming a leader in Bitcoin mining. The company’s strategic move to design a cutting-edge three-nanometer Bitcoin mining chip and partner with Core Scientific underscores its dedication to decentralizing the mining industry.
Scaling Back Other Ventures
To accommodate this increased focus on Bitcoin, Block intends to scale back investments in its music streaming platform, Tidal, and wind down TBD, the division responsible for developing the decentralized web platform known as “Web5.” This strategic shift has led to layoffs in these divisions, following a broader workforce reduction last year.
Financial Performance
Block’s third-quarter revenue of $5.98 billion fell slightly short of analyst expectations. While this news initially caused a dip in the company’s stock price, it has since recovered.
Overall, Block’s decision to prioritize Bitcoin mining reflects its belief in the cryptocurrency’s long-term potential and its commitment to supporting the decentralization of the Bitcoin network.