Block, the fintech giant led by Jack Dorsey, recently announced plans to expand its Bitcoin mining initiative and self-custody Bitcoin wallet, Bitkey. The decision involves reallocating resources from its discontinued “Web5” project, TBD, and reducing investment in Tidal, the music-streaming platform. In its quarterly shareholder letter, Block stated, “We are scaling back our investment in TIDAL and winding down TBD. This gives us room to invest in our Bitcoin mining initiative, which has strong product-market fit and a healthy pipeline of demand, and Bitkey, our self-custody wallet for Bitcoin.”
Trump’s Victory Spurs Crypto Market Optimism
Following Donald Trump’s U.S. presidential election victory, the crypto sector has expressed renewed optimism. Trump has voiced his ambition to establish the U.S. as a global crypto leader and pledged to support domestic Bitcoin mining while criticizing the Biden administration’s crypto policies. His administration plans to shape regulatory policy with insights from pro-crypto advocates.
Block Reports Q3 Revenue Decline Amid Consumer Spending Slowdown
In its Q3 financial report, Block revealed lower-than-expected revenue of $5.98 billion, slightly below Wall Street’s projection of $6.24 billion, as tracked by LSEG. Despite this, the company exceeded profit forecasts through cost-cutting measures. Block’s stock initially dipped by 10% in after-hours trading before recovering to a loss of less than 4%.
Block’s Bitcoin Mining Expansion Plans
Fortune reported recent layoffs within Block’s Tidal division and reductions in TBD staff as the company doubles down on Bitcoin mining. Block’s initiatives go beyond standard mining operations to improve Bitcoin mining infrastructure, making it more accessible for individuals and small businesses. Earlier this year, Block sold its first 3-nanometer ASIC mining hardware batch to Core Scientific and committed to reinvesting 10% of its monthly Bitcoin product profits into additional Bitcoin acquisitions.
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