What Block’s CFO and finance team want peers to know about Bitcoin

Core Insights - There is a growing trend among corporate treasuries to add bitcoin to their balance sheets due to increasing institutional acceptance and regulatory clarity [1] Company Overview - Fintech company Block has held bitcoin as part of its corporate assets since 2020, and is launching Square Bitcoin, a fully integrated bitcoin payments and wallet solution for businesses on November 10 [2] - Block's bitcoin journey began with customer demand, launching the ability for users to buy, hold, and sell bitcoin through Cash App in 2018, resulting in over 20 million active users trading more than $58 billion worth of bitcoin [4] Investment Strategy - Block made its first corporate bitcoin purchase of $50 million in 2020, which was less than 1% of total assets, primarily as a learning exercise [5] - In 2021, Block expanded its bitcoin holdings with an additional $170 million investment and adopted a dollar-cost averaging strategy in 2024, reinvesting 10% of monthly gross profit from bitcoin products [5] - As of Q2 2023, Block held 8,692 bitcoin on its balance sheet [6] Risk Management - Many finance leaders remain cautious about bitcoin's volatility compared to traditional assets, but Block positions bitcoin as a long-term investment guided by clear risk parameters [7] - Block emphasizes starting small with bitcoin investments to build understanding, and maintains a long-term view to instill confidence [8]