CEO Jack Dorsey is leading Block (NYSE:SQ), a payments firm that has started a dollar cost averaging initiative to expand its bitcoin reserves. Beginning in April, 10% of the company’s monthly bitcoin-related gross profit will be used to purchase more bitcoin, with plans to continue this strategy until 2024.
In the first quarter, Block reported $80 million in bitcoin gross profit. If this trend continues for the rest of the year, the company could accumulate around $24 million worth of bitcoin through this program, strengthening its balance sheet.
Block already owns a significant amount of bitcoin, acquiring 4,709 bitcoins in October 2020 and an additional 3,318 tokens in early 2021. With bitcoin’s current price at approximately $59,000, these holdings are valued at about $4.7 billion.
Alongside this initiative, Block has released its Bitcoin Blueprint For Corporate Balance Sheets. This blueprint explains how the company acquires large amounts of cryptocurrency without causing major market fluctuations, as well as detailing its processes for custody, insurance, and accounting of these assets.
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