TL; DR
Full story
Right, so Jack Dorsey’s Block (the payments company that owns Square and Cash App) is about to invest 10% of its annual profits into Bitcoin.
This is cool for two reasons:
-
It reflects the health of the current market.
Big companies with old names adopting Bitcoin in some way are usually a symptom of a bull run.
(The more companies adopt crypto → the healthier the market).
-
It outlines a new roadmap for other existing companies to follow.
Of course, there’s the MicroStrategy route – which has shown how the company’s market cap has increased tenfold since pouring every penny it has left into purchasing Bitcoin…
But that approach may be too tough for some. A 10% annual allocation will likely be more palatable to most CFOs.
And Block is not afraid of profit! In 2023, they made $7.5 billion in gross profit, from $12.42 billion in revenue.
If they were to repeat these numbers in 2024, it would amount to a $750 million investment in BTC.
If this were to be adopted by other corporate bonds, a snowball effect of supply and demand shock could quickly take hold of Bitcoin.
Very cool!