Jack Dorsey’s payments and blockchain infrastructure company, Block Inc., is shifting its focus to develop new tools for Bitcoin miners and enhance its self-custody crypto wallet.
According to the latest shareholder letter, the firm plans to reduce its investment in TIDAL, Jay-Z’s former music streaming platform, while also winding down TBD, its Bitcoin-focused unit that aimed to create a decentralized internet known as “Web5.”
Interestingly, the announcement of Block’s focus on Bitcoin mining came in the same week that Donald Trump won the US presidential election, promising a more crypto-friendly environment in the world’s largest economy.
Trump had previously met with Bitcoin mining leaders at Mar-a-Lago in June, bringing together key players from companies such as Marathon Digital and Riot Platforms. During the closed-door meeting, the president-elect expressed support for Bitcoin mining in the US and criticized the Joe Biden administration’s position on cryptocurrency.
Later, Trump reiterated his belief that Bitcoin should be mined in the US, claiming it would help the country achieve energy dominance and urging a shift away from foreign mining operations.
Meanwhile, Dorsey’s shareholder letter noted,
“Within our emerging initiatives, we are refining our investments based on our progress. We are scaling back our investment in TIDAL and winding down TBD. This gives us room to invest in our bitcoin mining initiative, which has strong product market fit and a healthy pipeline of demand, and Bitkey, our self-custody wallet for bitcoin.”
Besides redirecting resources to focus on mining equipment development, Block also plans to allocate resources to Bitkey, which happens to be the firm’s self-custodial Bitcoin wallet which was launched in December 2023.
The cost-cutting efforts, on the other hand, come months after layoffs at the fintech firm.
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