In a recent shareholder letter, Jack Dorsey announced that his financial services company Block will allocate 10% of gross profits from its Bitcoin products and services toward purchasing more BTC every month.

This represents a form of dollar-cost averaging, a strategy of investing a fixed amount at regular intervals regardless of price to build a position over time. Block stated it is "investing in a future where economic empowerment is the norm" through this BTC accumulation plan.

The company had previously bought $220 million worth of Bitcoin in late 2020 and early 2021, becoming one of the first public firms to add BTC to its balance sheet. Its Bitcoin holdings currently stand at 8,038 BTC worth around $573 million based on today's prices.

Growing Bitcoin Business Block operates a Bitcoin trading service through its Cash App, allowing retail users to buy and sell the cryptocurrency. In Q1 2024, this business generated $2.73 billion in Bitcoin revenue (sales to customers) and $80.1 million in Bitcoin gross profit.

The new 10% allocation from this gross profit could translate to approximately 1,350 additional BTC acquired each month by Block going forward based on current pricing.

Bitcoin remains a growing focus for the company formerly known as Square. While Jack Dorsey stated "less than 3% of company resources" are dedicated to Bitcoin projects currently, Block has big ambitions in the space.

Recent initiatives include launching a self-custody Bitcoin wallet called Bitkey and plans to build out "a full Bitcoin mining system" following the latest halving event.

Long-Term Crypto Vision In the shareholder letter, Dorsey reiterated his belief that "the internet will have a native currency" and that Bitcoin could become the basis for economic empowerment worldwide.

He acknowledged this transition won't happen overnight as legacy and emerging financial systems operate in parallel for some time. But Dorsey clearly sees Bitcoin adoption as an inevitability that Block aims to help drive.

The company's BTC buying program represents a long-term investment toward that vision while also supporting Bitcoin's network effects and liquidity. As a respected voice in tech, Dorsey's actions will likely inspire other companies to consider similar Bitcoin accumulation strategies over time.