Block Is Buying Bitcoin Every Month for Its Balance Sheet

Block Inc., previously known as Square, has provided an update of its bitcoin strategy. CEO Jack Dorsey shared a document on social media platform X Thursday, titled “Bitcoin Blueprint For Corporate Balance Sheets.” Emphasizing that “Block is DCA’ing bitcoin every month,” Dorsey suggested that other companies “can do it too.” The document details:

We are announcing our new corporate balance sheet dollar cost average (DCA) program, under which each month we will be investing 10% of Block’s monthly gross profit from bitcoin products into purchases of bitcoin for investment.

Under this DCA program, Block intends to buy bitcoin monthly, beginning in April, utilizing Time-Weighted Average Price (TWAP) orders. To minimize slippage, the company said it will buy BTC “over a two-hour window that has historically had the greatest amount of liquidity.”

The document also elaborates on Block’s bitcoin ecosystem, which includes the Cash App, TBD, various bitcoin hardware projects like the self-custody bitcoin wallet Bitkey, a bitcoin mining system, and Spiral. Noting that Cash App enables customers to buy and sell BTC, Block described TBD as “an open developer platform focused on making the decentralized financial world accessible for everyone” and Spiral as “an independent team focused on contributing to bitcoin open source work.”

Additionally, Block shared its BTC holding details. Initially, as Square, the company purchased 4,709 bitcoins on Oct. 7, 2020, for $50 million at $10,618 per BTC. In February 2021, the company acquired an additional 3,318 bitcoins for $170 million at $51,236 per BTC. Block stated:

As of March 31, 2024, we hold 8,038 bitcoins on our balance sheet, which represents approximately 9% of Block’s total cash, cash equivalents, and marketable securities.

Since launching bitcoin support, Block “has developed a robust approach to bitcoin cold storage,” the company said, adding that in October 2020, “we open-sourced documentation, code, and tools for Subzero, our Hardware Security Module–backed solution for protecting our customers’ and Block’s bitcoin holdings.”

Block wrote: “We view bitcoin as an instrument of global economic empowerment; it is a way for individuals around the world to participate in a global monetary system and secure their own financial future.”

The bitcoin community welcomes Block’s new bitcoin initiative. Gabor Gurbacs, Vaneck’s director of digital asset strategy, commented:

Block, Tether, Microstrategy, private institutions, and family offices recognize that recurring bitcoin allocations are very important given that fiat currencies are designed to lose their value.

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