“Surpassing Expectations, Jack Dorsey’s Block Ventures Generates Excess Revenue and Initiates Periodic Bitcoin Acquisitions Using Partial Profit”

"Surpassing Expectations, Jack Dorsey's Block Ventures Generates Excess Revenue and Initiates Periodic Bitcoin Acquisitions Using Partial Profit"

"Surpassing Expectations, Jack Dorsey's Block Ventures Generates Excess Revenue and Initiates Periodic Bitcoin Acquisitions Using Partial Profit"

Twitter founder Jack Dorsey’s financial technology company Block (formerly known as Square) exceeded analysts’ expectations in the first quarter. According to the company’s disclosed financial report, adjusted earnings per share were 85 cents, exceeding market expectations by 13 cents, while revenue of $5.97 billion also surpassed Wall Street’s forecast of $5.82 billion. Gross margin grew by 22% in the first quarter compared to the previous year, reaching $2.09 billion.

It is worth mentioning that Block also announced that it has been using 10% of monthly Bitcoin-related gross profit to purchase additional Bitcoin since April, and plans to increase holdings every month until 2024. According to the first quarter financial report, Block’s Bitcoin-related gross profit was $80 million. If this level of profitability can be sustained into the second half of this year, according to this plan, the company’s balance sheet will increase in value by $24 million in Bitcoin.

In fact, Block already held a large amount of Bitcoin before launching the recurring purchase plan. The company purchased 4,709 Bitcoins in October 2020 and an additional 3,318 Bitcoins in early 2021, calculated at a price of $59 million. These Bitcoins are currently worth about $4.7 billion.

In addition, Block also publicly released the Bitcoin financial blueprint of its balance sheet to facilitate other companies to emulate. The document describes the process by which it can acquire a large amount of cryptocurrency without unduly affecting the market, as well as how it custodies, secures, and accounts for Bitcoin on its balance sheet. Jack Dorsey stated, “We believe the world needs an open protocol for money, one not owned or controlled by any single entity. We believe Bitcoin is the best and only candidate to become that protocol and ultimately become the native currency of the internet.”