Block Inc. SQ CEO Jack Dorsey reiterated the company’s exclusive focus on Bitcoin BTC/USD, intending to make the cryptocurrency the centerpiece of its financial services operations.
What Happened: During the company’s third-quarter earnings calls on Thursday, Dorsey stated that Block’s Bitcoin-centric strategy was driven by the desire to establish a native currency for the internet, which would accelerate their business.
“If we have a native currency for the Internet, it means we can move money much faster, and we can offer Cash App products and Square products in every single market instead of the market-by-market push that we have to do today,” Dorsey emphasized.
Apart from the “Cash App” digital wallet service, the co-founder expressed confidence in Bitcoin’s ability to boost its mining chip offerings.
“Mining is, we think, going to be pretty large for us because we’ve been developing ASICs for quite some time. There’s a specialized version of an ASIC,” Dosey said, implying that more deals, such as the historic sale of 3 nanometer (3nm) mining ASICs to leading miner Core Scientific, could follow in the future.
See Also: Could MiCA’s Passport System Open Doors Across Europe For Crypto Exchanges?
Why It Matters: Block reported its third-quarter financials after Thursday’s market close, showing mixed results with an EPS beat but a miss on revenues.
The company reported holding 8,363 BTCs on its balance sheet at the end of the third quarter, worth nearly $530 million, a significant increase from 8,211 BTCs reported in the previous quarter. This amounted to an addition worth $15 million to the Bitcoin portfolio.
Block announced a new strategy beginning April 2024, wherein it would allocate 10% of its monthly Bitcoin-related gross profit to purchase more Bitcoins. The company described it as an attempt to minimize the impact on the market, usually seen after large, one-off purchases.
Price Action: Shares of Block were down 1.62% in after-hours trading, after falling 3.18% to $2.47 during Thursday’s regular trading session, as per data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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