Bitcoin building BlocksJack Dorsey’s Block tries to build on its flattening share prices with a Bitcoin mining system.
- Prices had nearly 6% squashed out of them on Thursday to hit their lowest levels since September 2020.
- It’s building a system for Bitcoin miners in the U.S., complete with a new team of experts. The idea is that mining will become more decentralized and accessible, contributing to the overall resilience of the Bitcoin network.
- The pieces fit together perfectly. Dorsey is a huge Bitcoin proponent, stepping down from Twitter largely to pursue crypto at Block, and the U.S. is fast becoming the world’s new mining hotspot.
Dorsey dismisses Web3Jack gets Twitter’s knickers in a twist again, with a post claiming that the mythical ‘Web3’ everyone is so excited about is just a centralized, capitalist network by another name. Don’t rain on our parade, Jack.
- Web3 is what people are calling the future of the internet – a decentralized, blockchain-based future of connected systems. But Dorsey is angry about the involvement of VC firms like Andreessen Horowitz, who have been among the most vocal supporters of the trend.
- It started a nice big Twitter battle. Elon Musk got in on the act, asking: “Has anyone seen web3? I can’t find it…”
- Didn’t hurt Block’s share price though, which jumped almost 8% yesterday after weeks of sliding.
New kid on the BlockJack Dorsey takes a leaf out of Zuckerburg’s book, taking Square 3D with a shiny new name.
- Square is changing its name to Block. Prices still drop 6.6% on Tuesday.
- The name is a nod to its new blockchain-focused direction. A Bitcoin fanatic, Dorsey has said there’s nothing “more important in my lifetime to work on.”
- It’s been a busy week for Dorsey, who left Twitter (TWTR) earlier this week to focus on Block.
Has Square lost its edge?Jack Dorsey’s fintech baby, Square, failed to sharpen its edges this quarter – and Bitcoin was a big reason why.
❗️ Square missed on both the top and bottom lines with its third quarter earnings thanks to a slowdown in its Cash App
🎢 Its consumer app took a major blow from lower-than-expected Bitcoin revenue after a rollercoaster quarter for the crypto.
😔 Bitcoin brought in $1.8 billion, nearly $1 billion below expectations and down from the second quarter.
🙆🏻♂️ Square don’t care and continues to be “focused on Bitcoin” over other currencies, probably largely because the boss is one of the biggest Bitcoin bulls out there.
🌈 Things are getting better, with a noted increase in volume in October that should carry on through the year.
Illustration by TradingView
Square hints at its own BTC mining operationsSquare CEO Jack Dorsey is taking another bet on Bitcoin, and is looking at building its own Bitcoin mining system as the token retakes $60k.
Bitcoin is booming, and long-time crypto bull Jack Dorsey and his fintech company Square are considering diving deeper into the crypto with its own “Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide”. The new feature would add to Square’s growing list of Bitcoin-focused projects, which already includes a hardware wallet for the currency, and a team at Square is going to investigate what the prerequisites for such a build would be. Dorsey said:
Mining needs to be more distributed. The more decentralized this is, the more resilient the bitcoin network becomes.
Square edged up in after-hours trading late Friday.
Square spends big to expand 'buy now pay later' servicePayment company Square is expanding its loan operations as the “buy now pay later” trend takes off, with a $29 billion acquisition of Australian Afterpay sending its stock soaring over 10% on Monday to close at $272.38.
Jack Dorsey’s fintech company Square had a surprise Sunday in store for investors, releasing Q2 results AND building out its loan operations as demand surges for buy now pay later services, which big dogs like Apple (AAPL) are getting involved in too. Square has just inked a deal to buy Australian fintech company Afterpay in a $29 billion all-stock deal, offering a premium of 30% on the company’s last closing price. The takeover will be the biggest in Australian history.
Square already offers instalment loans, with the service key to its core seller business, and Afterpay will be integrated into its seller and Cash App offerings. The buy now pay later trend has boomed over the past year, especially amongst younger consumers who don't always have cash in hand to indulge their online shopping desires. One of Afterpay’s biggest rivals is the Swedish Klarna, which has seen its valuation double in the last three months.
Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles.Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands,
said Square’s CEO (and Twitter guru) Jack Dorsey in a statement.
The company released a mixed quarterly report though, reporting earnings per share of $0.66 compared to estimates of $0.31, and with revenue missing expectations at $4.68 billion, compared to the $5.05 billion analysts were looking for. Gross payments volume came in at $42.8 billion, up from $22.8 billion in the same period last year. Square’s Cash App did record a record rise in Bitcoin revenue though, up 200% from Q2 last year, as it reaps the benefits of Bitcoin's bull run earlier this year.
Square focuses on BitcoinAfter recently adding a Bitcoin hard wallet, Jack Dorsey's Square is combining its Seller, Cash App and Tidal services into one Bitcoin-focused business.
Twitter’s Jack Dorsey said in a flurry of tweets on Thursday that his digital payments company, Square, will be combining its Seller, Cash App and Tidal services to create one big open developer platform. The new business will primarily focus on Bitcoin, with the goal of:
making it easy to create non-custodial, permissionless, and decentralized financial services.
Like Square’s recently announced hard wallet for Bitcoin, the new platform will be completely open source. Cash App has 36 million active users per month, up 140% since 2018, and it brought in $529 million in Q1 of this year, making up an estimated 65% of Square’s $108 billion market cap.
Square launches new crypto walletJack Dorsey’s payment company, Square, is jumping on the crypto train and building a Bitcoin hardware wallet to try and make crypto custody more mainstream.
Square, the payments company headed by Twitter CEO Jack Dorsey, is working on a Bitcoin hardware wallet in an effort to make crypto custody more mainstream and contribute to wider crypto adoption. The announcement comes a month after the company said that it was considering a break into the wallet world, and the enthusiastic reaction from the crypto community apparently prompted the company to make its move. A personal hardware wallet is non-custodial, which means that crypto holders can stay in control of their own private keys instead of requiring third parties like crypto exchanges to handle the keys on their behalf.
We have decided to build a hardware wallet and service to make bitcoin custody more mainstream. We’ll continue to ask and answer questions in the open. This community’s response to our thread about this project has been awesome – encouraging, generous, collaborative, & inspiring,
said the company’s hardware lead, Jesse Dorogusker, in a twitterstorm on Thursday.
Dorsey’s devotion to Bitcoin is no secret - #bitcoin is all that the tech titan talks about on his Twitter bio, and the billionaire thinks that the currency is one of the most important developments, like, ever.
Bitcoin changes absolutely everything. I don’t think there is anything more important in my lifetime to work on. If I were not at Square or Twitter, I would be working on bitcoin. If (bitcoin) needed more help than Square or Twitter, I would leave them for bitcoin. But, I believe both companies have a role to play,
Dorsey said at the Bitcoin 2021 Conference.
This isn't Square’s first foray into the crypto world – its Cash App already lets user buy and sell Bitcoin, which has been a major money-maker for the payment company. The app brought in $3.51 billion in Bitcoin revenue in Q1 and made the firm $75 million in Bitcoin gross profit in that period. The company also formed a crypto council recently, joining forces with other industry leaders like Coinbase and Fidelity to lobby policy makers; and the payments firm has also partnered with Blockstream to build a 100% solar powered Bitcoin mining farm in the U.S.
Looks like Square is determined to stay ahead of the game.
Square is sneakily expandingJack Dorsey’s financial payments firm Square lifts 5.5% on the back of reports that it will start offering checking and savings accounts.
Square’s technology has already changed the way small businesses take card payments, and it’s now quietly taking aim at big dog traditional lenders like JP Morgan by offering checking and savings accounts to its customers. Business checking and savings accounts have previously been traditional banking territory, but Square has begun to creep in – in March of last year, the digital payments company got approval at a federal level to open a bank in Utah’s capital, which started operating a year later in March 2021. In the same period, Square stock has seen some outstanding gains, from trading at around $80 before the COVID crash in March, to closing last week up at $217. That’s quite the leap.
You’d think that a firm with primarily small business owners as clients would have taken more of a hit during the pandemic, and it’s certainly seen some losses; but the business has been spurred on by the use of its Cash App as well as a bunch of analyst upgrades. The bulls believe that Square will be vital to small businesses recovering from COVID by digitizing and advancing its e-commerce segment – an opinion supported by this latest development.
The news has yet to be officially announced, but a hidden code was spotted in a recent Square update to its iPhone and iPad apps. The code talks about both kinds of accounts, and indicates that Square will offer a 0.5% interest rate for its savings account through the year. If the rumors are true, the news will go some way towards setting Square up one of the most exciting new financial stocks of the year.
Square has neither confirmed nor denied the rumors.