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Jack Dorsey's Company Allocates More Budget to Bitcoin and Closes This Branch - Coin Bulletin
Jack Dorsey's payment company Block (formerly known as Square) announced that it will increase its investments in Bitcoin mining and its own Bitcoin storage wallet Bitkey next year.
In the third quarter investor letter, Block noted that Bitcoin mining is a "strong product-market fit" and has a "healthy demand structure". The company's move is in line with Donald Trump's election campaign promises to make the US a global leader in Bitcoin mining.
Block announced that it will reduce its investments in the music streaming application Tidal, while emphasizing its commitment to Bitcoin mining, and will shut down the TBD unit aimed at developing the decentralized web platform called Web5. In recent weeks, the company has reduced personnel in Tidal and TBD units, following last December's 10% layoffs. Block reached out to the company for comments on the matter.
The company announced in April that it had completed three-nanometer mining chips and would set up a complete Bitcoin mining system to support decentralization of mining. In July, it partnered with Core Scientific to supply this mining company with its latest mining chips.
Block announced its third-quarter revenue as $5.98 billion. According to CNBC, this figure fell short of analysts' estimate of $6.24 billion. Following the announcement, the company's shares initially dropped to $66, a decrease of 10%, but later recovered to $73.95.