Jack Dorsey's Block Invests in Bitcoin Mining

Jack Dorsey’s payment firm, Block (formerly Square), will increase investments in bitcoin mining and its self-custody wallet, Bitkey, in the coming year.

In its third-quarter shareholder letter, Block highlighted that the bitcoin mining initiative has a "strong product market fit" and a "healthy pipeline of demand." This announcement coincides with Donald Trump's call to position the U.S. as a global leader in bitcoin mining during the presidential election.

To support its bitcoin mining commitment, Block plans to reduce investments in its music streaming app, Tidal, and wind down its decentralized web platform project, TBD. The company has reportedly been laying off staff at Tidal and TBD recently, following a 10% layoff in December.

In April, Block revealed it had completed the design of its three-nanometer mining chip and intends to build a comprehensive bitcoin mining system promoting decentralization. In July, Block partnered with Core Scientific to supply its latest mining chips.

Block reported $5.98 billion in revenue for the third quarter, falling short of the $6.24 billion estimated by analysts, causing its stock price to drop initially but recover afterward.

Dorsey, co-founder of social media platform X (formerly Twitter), co-founded Square in 2009. Since rebranding to Block in 2021, the company has focused on decentralized technology and cryptocurrency.