Block Inc. has unveiled its strategy to regularly acquire bitcoin for its corporate balance sheet through dollar-cost averaging (DCA). The company intends to allocate 10% of its monthly gross profit from bitcoin products towards investments in the cryptocurrency. “We view bitcoin as an instrument of global economic empowerment; it is a way for individuals around the world to participate in a global monetary system and secure their own financial future,” the company affirmed.
Jack Dorsey: ‘Block Is DCA’ing Bitcoin Every Month’
Block Inc., formerly Square, has provided an update on its bitcoin strategy. CEO Jack Dorsey shared a document on the social media platform X on Thursday, titled “Bitcoin Blueprint For Corporate Balance Sheets.” Highlighting that “Block is DCA’ing bitcoin every month,” Dorsey suggested that other companies “can do it too.” The document outlines:
We are announcing our new corporate balance sheet dollar-cost average (DCA) program, under which each month we will be investing 10% of Block’s monthly gross profit from bitcoin products into purchases of bitcoin for investment.
Under this DCA program, Block plans to purchase bitcoin monthly, starting in April, using Time-Weighted Average Price (TWAP) orders. To minimize slippage, the company plans to buy BTC “over a two-hour window that has historically had the greatest amount of liquidity.”
The document also provides insights into Block’s bitcoin ecosystem, which includes the Cash App, TBD, various bitcoin hardware projects such as the self-custody bitcoin wallet Bitkey, a bitcoin mining system, and Spiral. Describing Cash App as enabling customers to buy and sell BTC, Block referred to TBD as “an open developer platform focused on making the decentralized financial world accessible for everyone” and Spiral as “an independent team focused on contributing to bitcoin open source work.”
Furthermore, Block disclosed its BTC holding details. Initially, as Square, the company purchased 4,709 bitcoins on Oct. 7, 2020, for $50 million at $10,618 per BTC. In February 2021, the company acquired an additional 3,318 bitcoins for $170 million at $51,236 per BTC. Block stated:
As of March 31, 2024, we hold 8,038 bitcoins on our balance sheet, which represents approximately 9% of Block’s total cash, cash equivalents, and marketable securities.
Since introducing bitcoin support, Block “has developed a robust approach to bitcoin cold storage,” the company said, adding that in October 2020, “we open-sourced documentation, code, and tools for Subzero, our Hardware Security Module–backed solution for protecting our customers’ and Block’s bitcoin holdings.”
Block reiterated: “We view bitcoin as an instrument of global economic empowerment; it is a way for individuals around the world to participate in a global monetary system and secure their own financial future.”
The bitcoin community has embraced Block’s new bitcoin initiative. Gabor Gurbacs, Vaneck’s director of digital asset strategy, remarked:
Block, Tether, Microstrategy, private institutions, and family offices recognize that recurring bitcoin allocations are very important given that fiat currencies are designed to lose their value.
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