TL;DR
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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:
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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).
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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!
