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Jack Dorsey's payment company Block (formerly known as Square) is prioritizing Bitcoin-related initiatives, with a focus on crypto mining.
Specifically, Block said it will pour more resources into developing equipment for Bitcoin miners and advancing its self-custody crypto wallet, Bitkey. The move is funded by scaling back its investment in music streaming service Tidal and abandoning its new decentralized "Web5" internet.
Block's decision follows Trump's re-election. In June, Trump met with a dozen Bitcoin mining executives at the Mar-a-Lago country club. Representatives from Marathon Digital, Riot Platforms Holdings, Terawulf, CleanSpark, and Core Scientific, all attended the meeting, forming a coalition of Bitcoin miners.
Shortly after the meeting, Trump posted on Truth Social that Bitcoin will only be mined in America.
Blockhead
In a shareholder letter for the third quarter, Block explained its restructuring approach, explaining, "Within our emerging initiatives, we are refining our investments based on our progress. We are scaling back our investment in TIDAL and winding down TBD." TBD is the team behind Web5.
"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," Block stated.
Bitkey is designed to integrate with Block's other platforms, such as Cash App and Coinbase, providing more accessible options for buying, selling, and storing Bitcoin.
Block does not mine Bitcoin but supplies mining equipment to mining companies, including providing its specialized 3-nanometer mining chip to Core Scientific.
This pivot aligns with Block's cost-cutting measures that were announced earlier this year, which included a planned 10% headcount cut by the end of 2024.
