Jack Dorsey’s payments company Block (formerly Square) has announced plans to focus on Bitcoin mining and its self-custody wallet Bitkey, marking a strategic shift in its crypto and decentralized technology efforts.
Jack Dorsey's Block Will Focus on Bitcoin Mining
The move, outlined in Block’s third-quarter shareholder letter, comes as the company has stepped back from other ventures, including its decentralized technology arm TBD and music streaming service Tidal.
The decision is in line with recent calls from President-elect Donald Trump, who has advocated for the U.S. to lead global bitcoin mining. Block emphasized that the bitcoin mining startup has demonstrated strong product-market fit and currently has a healthy demand pipeline.
In an effort to support the decentralization of mining, Block announced in April that it had completed the design of a three-nanometer mining chip and was on track to build a full Bitcoin mining system. In July, Block entered into a partnership with Core Scientific to provide the mining firm with its advanced chips.
However, in order to prioritize these Bitcoin-focused projects, Block announced that it will reduce investments in Tidal and shut down TBD, the business unit dedicated to the decentralized Web5 platform.
The company reportedly began layoffs at Tidal and TBD last week, less than a year after reducing the workforce by 10% last December.
Financially, Block reported a slight decline in revenue for the quarter, reporting $5.98 billion, missing analysts' expectations of $6.24 billion.
The news sent Block's shares plunging 10% to $66 in after-hours trading but later recovering to $73.95.
*This is not investment advice.