Block Inc. Shifts Focus to Bitcoin Mining and Self-Custody Wallets

Block Inc., formerly known as Square, led by Jack Dorsey is redirecting its strategy to Bitcoin mining and self-custody wallets

Block Inc., formerly known as Square and led by Jack Dorsey, is pivoting its strategy towards Bitcoin mining and self-custody wallets, while scaling back funding for decentralized web projects and the music streaming app, Tidal.

This shift in strategy comes amidst Trump’s victory in the recent U.S. presidential election, a development that has had a positive impact on the cryptocurrency industry.

During his campaign, Trump expressed support for the digital asset industry, including the struggling Bitcoin mining sector, which has remained largely unprofitable since the halving event in the first half of the year.

Block to Prioritize Bitcoin Mining, Wallet Development

Block’s third-quarter shareholder letter reveals the company’s decision to redirect resources from Web5 and Tidal to BTC products. Notably, Block has been involved in the construction of mining equipment, rather than directly mining Bitcoin. Through the production of mining equipment, the company aims to amplify its impact within the industry.

This follows recent developments, such as Bitcoin Maxi Michael Saylor urging Microsoft CEO Satya Nadella to consider adding Bitcoin to the company’s investment portfolio.

In April 2024, the company announced the discovery of a 3-nanometer mining chip, highlighting Block’s efforts to enhance mining technology for commercial applications. Earlier this year, Core Scientific, one of the largest Bitcoin mining companies, expressed interest in deploying Block’s miners for its operations.

Moreover, Block also announced its intention to increase investment in Bitkey, a self-custody Bitcoin wallet that was launched in March. Bitkey allows users to buy, sell, and hold Bitcoin, with the capability to connect to Block’s Cash App and the Coinbase platform.

The emphasis on Bitkey aligns with Block’s broader vision of offering secure storage and transaction solutions for cryptocurrencies.

Block's Decision to Wind Down Web5, Tidal Investments

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