Bitcoin
Block (SQ) Adding More Bitcoin (BTC) to Balance Sheet
Payments company Block (SQ) has started a dollar-cost averaging (DCA) program to add to its already sizable bitcoin holdings. (BTC) battery.
Led by CEO Jack Dorsey, the company in April began using 10% of its monthly bitcoin-related gross profit to purchase additional bitcoin, with plans to do so every month until the end of 2024.
For perspective, Block made $80 million in gross bitcoin profit in the first quarter, according to its earnings results. If this level of profit continued for the rest of the year, the company under this program would add another $24 million worth of bitcoin to its balance sheet.
Block already owns substantial bitcoin holdings, having purchased 4,709 bitcoins in October 2020 and another 3,318 tokens in early 2021. At today’s price of about $59,000, that bitcoin is now worth about $4.7 billion.
Along with this news, the company also released its Bitcoin Project for Corporate Balance Sheetsin which it describes the process through which it is able to acquire large amounts of crypto without unduly moving the market, and how it custodians, secures and accounts for the assets.