In the early days of cryptocurrency, there were only a handful of companies, including venerable companies that are still around today, such as Coinbase, Kraken, and Grayscale. There are currently hundreds of companies offering cryptocurrencies, including companies like BlackRock and PayPal that primarily operate in the traditional financial world. For me, the most intriguing of them at the moment is Brock. The company is best known to consumers for its in-store Square devices and peer-to-peer Cash App, but it's also quietly built a vast Bitcoin empire, raked in cash and launched a growing number of innovative products. I am.
I was reminded of this when I spoke with Michael Riani, Block's product director. His previous responsibilities have included managing Tesla's Bitcoin operations and helping build Apple Pay. He shared details about Block's newest cryptocurrency service, “Bitcoin Conversions.'' This allows thousands of Square merchants to convert 1% to 10% of their daily sales into Bitcoin and transfer it to their personal Cash App accounts. The process is similar to choosing to allocate a portion of your paycheck to a dedicated savings account.
I was initially skeptical, as I couldn't believe that there were so many owners of coffee shops, flower shops, etc. who wanted to allocate a portion of their daily sales to Bitcoin. But Riani said Block is already working with more than 100 distributors to develop an alpha version of the product, and the company is seeing a lot of interest. While Bitcoin Conversions is unlikely to open the floodgates to the level of his recent ETF offerings, it will no doubt open up yet another conduit between Bitcoin and mainstream commerce. And considering how merchants in every corner of the country rely on Square, that could be significant. over time. And for Block, the $66 million in Bitcoin profits related to Cash App in the last quarter alone means even more crypto revenue.
Meanwhile, the company's CEO Jack Dorsey announced a new major cryptocurrency effort this week in the form of a Bitcoin mining rig. This means that Block's rigs, a product of the company's existing chip initiative, will diversify mining operations that currently rely heavily on devices made by a small oligopoly of Chinese manufacturers, eliminating the excess heat and noise that comes with them. This is a major problem that we are trying to alleviate. process. This mining effort also comes shortly after Block started shipping these cool stone-like wallets that allow people to manage their Bitcoin.
All of this highlights that Dorsey is not only one of the most eccentric CEOs in the Fortune 500, but also one of the most visionary. His Bitcoin-only philosophy offends many in the broader cryptocurrency world, but his relentless quest to expand Bitcoin's reach while running a profitable public company This makes Mr. Dorsey and Mr. Block a unique force in the industry.
jeff john roberts
jeff.roberts@fortune.com
@jeffjohnroberts
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