Jack Dorsey's Square to Invest More in Bitcoin Mining and Shut Decentralized 'Web5' Venture
Block (SQ) is shifting its focus to developing equipment for bitcoin miners and enhancing its self-custody crypto wallet, Bitkey. This strategic change involves scaling back investments in the decentralized internet project Web5 and reducing funding for the music streaming app Tidal. The decision coincides with Donald Trump's election win, which may create a more favorable environment for crypto in the U.S. Block reported third-quarter revenue of $5.98 billion, below the expected $6.24 billion, leading to a 10% drop in stock price. Although Block does not mine bitcoin, it sells mining equipment and has developed a 3-nanometer mining chip. Bitkey, launched in March, integrates with Cash App and Coinbase for bitcoin transactions. The company plans to cut its workforce by up to 10% by the end of 2024 due to rapid growth outpacing revenue.
