Block (SQ) Initiates Dollar Cost Averaging Program to Add Bitcoin to Its Holdings:
Payments firm Block (SQ), led by CEO Jack Dorsey, has embarked on a dollar cost averaging (DCA) program to further bolster its significant bitcoin (BTC) holdings. Starting in April, the company allocated 10% of its monthly bitcoin-related gross profit towards purchasing additional bitcoin, intending to continue this practice throughout 2024.
During the first quarter, Block reported $80 million in bitcoin gross profit, as per its earnings results. If this level of profit is sustained for the remainder of the year, the company plans to acquire approximately $24 million worth of bitcoin under this program.
Block has already amassed substantial bitcoin holdings, having acquired 4,709 bitcoins in October 2020 and an additional 3,318 tokens in early 2021. With bitcoin currently valued at around $59,000, these holdings amount to approximately $4.7 billion.
In addition to this initiative, the company unveiled its Bitcoin Blueprint For Corporate Balance Sheets, outlining its strategy for acquiring large quantities of crypto without significantly impacting the market. The blueprint also details how Block manages the custody, insurance, and accounting of its bitcoin holdings.
