Block Leads with Bitcoin Acquisition Program

Led by CEO Jack Dorsey, payments firm Block (NYSE:SQ) has commenced a dollar cost averaging initiative to expand its substantial bitcoin reserves. Starting in April, the company allocated 10% of its monthly bitcoin-related gross profit to purchase additional bitcoin, intending to continue this practice throughout 2024.

During the first quarter, Block reported $80 million in bitcoin gross profit. If this level persists for the remainder of the year, the company will accumulate approximately $24 million worth of bitcoin under this program, further bolstering its balance sheet.

Block already holds a significant amount of bitcoin, having acquired 4,709 bitcoins in October 2020 and an additional 3,318 tokens in early 2021. With bitcoin’s current price hovering around $59,000, these holdings are valued at approximately $4.7 billion.

In addition to this initiative, Block has released its Bitcoin Blueprint For Corporate Balance Sheets. This blueprint outlines the methodology behind its large-scale crypto acquisitions, detailing how the company acquires significant amounts of cryptocurrency without causing significant market fluctuations. It also elucidates Block’s processes for custody, insurance, and accounting of these holdings.

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