Block has started a program to buy more bitcoin using 10% of its monthly bitcoin-related profits, aiming to significantly boost its Bitcoin holdings by the end of 2024.
Payments company Block, formerly known as Square (SQ), has initiated a dollar cost averaging (DCA) program to increase its already considerable bitcoin holdings, as revealed in its first quarter earnings report on Thursday afternoon.
The program, which commenced in April, involves the company allocating 10% of its monthly gross profit from bitcoin-related activities to purchase additional bitcoin. The initiative is led by CEO Jack Dorsey and is slated to continue each month throughout the remainder of 2024.
According to the recent earnings report, Block generated $80 million in bitcoin gross profit during the first quarter. Should profits maintain at this level, the company's DCA program is poised to invest an additional $24 million in bitcoin onto its balance sheet by the year's end.
Block's current bitcoin assets are substantial, with the company having acquired 4,709 bitcoins in October 2020 and an additional 3,318 tokens in early 2021. Given the current bitcoin price of about $59,000, these holdings are now valued at an estimated $4.7 billion.
In conjunction with the announcement of the DCA program, Block also released a document titled "Bitcoin Blueprint For Corporate Balance Sheets." This blueprint outlines the methodology by which Block purchases significant amounts of bitcoin without significantly impacting market prices. It also details the procedures for the custody, insurance, and accounting of its bitcoin holdings.
