Financial services company Block, Inc. (NYSE:SQ), co-founded by tech mogul Jack Dorsey, is well-known for holding a significant amount of Bitcoin (CRYPTO: BTC) on its balance sheet.
What happened: Exactly four years ago on Oct. 7, 2020, the company, which also sells point-of-sale equipment to small businesses, acquired 4,709 BTCs for a total of $50 million, or $10,618 per unit.
The firm doubled down on the strategy in subsequent months, bagging an additional 3,318 BTCs at an aggregate price of $170 million in February 2021.
According to its second-quarter earnings report, Block held a total of 8,211 BTCs on its books as of June 30, 2024, worth $511.29 million at the current market value.
Against a cost basis of $231.4 million, Block's paper profit amounted to roughly $279.89 million, or over 120%.
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Why It Matters: According to the company's disclosure, the apex cryptocurrency is held for "long-term investment purposes" and to facilitate sales and purchases via its "Cash App" digital wallet service.
Block announced a new strategy beginning April 2024, wherein it would allocate 10% of its monthly Bitcoin-related gross profit to purchase more Bitcoins. The company described it as an attempt to minimize the impact on the market, usually seen after large, one-off purchases.
Price Action: At the time of writing, Bitcoin was exchanging hands at $62,269.11, down 2.03% in the last 24 hours, according to data from Benzinga Pro. Shares of Block closed 1.95% lower at $65.71 during Thursday's trading session.
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