BITCOIN NEWS: JACK DORSEY'S BLOCK TO REINVEST 10% OF MONTH PROFIT IN WORLD'S LARGEST CRYPTOCURRENCY

Bitcoin News: Block raised its full-year adjusted core profits projection on Thursday and announced plans to add additional bitcoin to its balance sheet, as the Jack Dorsey-led company bets heavily on the cryptocurrency. The company's shares rose 7.9% after the bell, according to Reuters report.

The Securities and Exchange Commission approved seven bitcoin exchange-traded funds in January, bringing the once-emerging asset class closer to the mainstream. Block would invest 10% of its monthly gross revenues from bitcoin products in acquiring the asset class, according to CEO Dorsey's shareholder letter.

"We believe the world needs an open protocol for money, one that's not owned or controlled by any single entity," Dorsey said in the e-mail. He stated that the company now dedicates less than 3% of its efforts to bitcoin-related projects.

Block's profits above expectations

Block now anticipates annual adjusted core profits of at least $2.76 billion, up from its previous estimate of $2.63 billion. Payments companies have profited from a robust labour market and salary growth, which has enabled Americans to ignore concerns about an economic slowdown and continue spending on vacation, shopping, and dining out, Reuters reported.

Block's profits above expectations, capping off a generally robust quarter for the payments sector, whose fortunes are strongly linked to consumer spending growth. The corporation reported a 19% increase in total net sales to $5.96 billion in the reporting quarter.

Strong earnings

Earlier this week, bigger rival PayPal boosted its full-year adjusted profit outlook, indicating that consumer spending remains strong. On an adjusted basis, Block earned 85 cents per share in the three months ended March 31, above analysts' expectations of 72 cents per share. As of the most recent closing, the company's shares had declined 9.1% this year, behind peer PayPal's 9% increase, as per Reuters report.

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2024-05-03T07:27:33Z dg43tfdfdgfd