Jack Dorsey’s payments firm, Block (formerly Square), announced plans to intensify its focus on bitcoin mining and its self-custody wallet Bitkey, marking a strategic shift in its crypto and decentralized tech endeavors. This move, outlined in Block’s third-quarter shareholder letter, comes as the company steps back from other initiatives, including its decentralized tech arm, TBD, and music streaming service Tidal.
The decision aligns with recent calls by President-elect Donald Trump, who advocated for the U.S. to lead in global bitcoin mining
Block emphasized that its bitcoin mining initiative has demonstrated a “strong product market fit” and currently holds a “healthy pipeline of demand.” In support of mining decentralization, Block revealed in April that it completed designing a three-nanometer mining chip, and it’s on track to build a full bitcoin mining system. By July, Block entered a partnership with Core Scientific to provide the mining firm with its advanced chips.
However, to prioritize these bitcoin-focused projects, Block announced it will scale back investments in Tidal and wind down TBD, its business unit dedicated to the decentralized Web5 platform. The company reportedly began layoffs within Tidal and TBD over the past week, less than a year after a 10% workforce reduction last December.
Financially, Block faced a slight dip this quarter, reporting $5.98 billion in revenue, missing analysts’ expectations of $6.24 billion. The news caused Block’s stock to drop 10% in after-hours trading, falling to $66 but later rebounding to $73.95.
Jack Dorsey, co-founder of social media platform X (formerly Twitter), launched Square as a mobile payments company in 2009. Since rebranding to Block in 2021, the company has ventured into decentralized technology and cryptocurrency, a direction now further focused on enhancing the U.S. presence in bitcoin mining.
