A New Corporate Roadmap, Pouring Profits Into BTC
TL;DR
Jack Dorsey’s Block is about to start investing 10% of its annual profits into Bitcoin, setting up a new BTC blueprint for other corporate treasuries to follow.
Full Story
Right, so Jack Dorsey’s Block (the payments company that owns Square and Cash App) is about to start investing 10% of its annual profits into Bitcoin.
This is cool for two reasons:
It reflects the health of the current market.
Large name legacy companies adopting Bitcoin in some way, shape, or form is typically a symptom of a bull run.
(The more companies are adopting crypto → the healthier the market).
It cuts a new roadmap for other legacy companies to follow.
Sure, there’s the MicroStrategy route — which has shown how the company’s market cap has 10x’d since pouring every spare cent it has into buying Bitcoin…
But that approach might be too heavy handed for some. A 10% annual allocation is probably going to be more palatable for most CFOs.
And Block isn’t shy of profits! In 2023 they pulled $7.5B of gross profit, out of $12.42B in revenue.
If they were to repeat those numbers in 2024, that would equate to $750M being poured into BTC.
If this were to be adopted by other corporate treasuries, a snowball effect of demand and supply shock could quickly take hold over Bitcoin.
Very cool!