Block, the payments firm headed by CEO Jack Dorsey, has initiated a dollar cost averaging (DCA) program to grow its Bitcoin holdings, as stated in a recent shareholder letter. Since April, the company has been allocating 10% of its monthly gross profit from Bitcoin-related products to purchase more Bitcoin, with plans to continue this strategy throughout 2024.

Dollar-cost averaging is an investment approach that involves investing a fixed dollar amount into a specific asset at regular intervals, regardless of the asset’s price at the time. This method helps to mitigate the effects of price volatility.

Block, Inc.’s move comes amidst the increasing acceptance of Bitcoin as a mainstream investment option, highlighted by the approval of several Bitcoin exchange-traded funds by the Securities and Exchange Commission in January. This growing mainstream recognition aligns with the company’s dedication to investing in Bitcoin.

Jack Dorsey emphasized, “We believe the world needs an open protocol for money, one that’s not owned or controlled by any single entity…Our investment in Bitcoin transcends technology; it is an investment in a future where economic empowerment is the norm.”

Despite the focus on Bitcoin, less than 3% of Block’s resources are currently dedicated to Bitcoin-related projects. However, the company has updated its earnings expectations, forecasting annual adjusted core earnings of at least $2.76 billion, up from the previously projected $2.63 billion.

The shift to a Bitcoin-centric portfolio is not new for Block. In October 2020, the company made headlines by purchasing 4,709 BTC at an average price of $10,618 per Bitcoin. Subsequent investments in February 2021 included adding 3,318 BTC at a significantly higher price of $51,236 each.

As of March 31, 2024, Block reported owning 8,038 BTC valued at $573 million, with paper gains totaling $233 million. However, despite these gains, Block’s shares have declined by 9% this year, with additional pressures following reports that Federal prosecutors are investigating the company’s internal compliance structures and its handling of transactions involving sanctioned countries.

For more information on Jack Dorsey’s Block and the latest updates, stay tuned to Global Crypto News.

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