Block, Inc. (formerly Square), the financial technology company founded by Jack Dorsey, has announced the launch of a new Bitcoin dollar-cost averaging (DCA) program. The company plans to add to its existing Bitcoin holdings on a regular basis as part of its commitment to integrating Bitcoin into its business operations.
Under this program, Block will allocate 10% of its gross profits from Bitcoin-related products each month towards purchasing additional Bitcoin. This strategy aligns with the company's belief in the potential of Bitcoin as an open protocol for money that can help serve more people globally.
The company will execute these Bitcoin purchases over a two-hour window each month that has historically had the greatest liquidity, aiming to minimize price slippage during transactions. To optimize its trades, Block will use a Time-Weighted Average Price (TWAP) strategy.
The DCA program is set to begin in April 2024 and will continue for the remainder of the year. As of March 31, 2024, Block held 8,038 Bitcoin on its balance sheet, worth approximately $573 million with a $233 million unrealized gain. Additionally, Block's Bitcoin gross profit for the first quarter of 2024 was $80.1 million, marking a nearly 60% increase year-over-year.
Jack Dorsey, Block's CEO and a prominent Bitcoin advocate, has been vocal about the importance of Bitcoin for the future of finance. The DCA program further underscores Block's dedication to advancing Bitcoin-related projects, to which it currently allocates less than 3% of its resources.
This strategic move by Block, Inc. represents a significant step in its ongoing support for the Bitcoin ecosystem and its vision for a more inclusive financial future.