TL;DR
- Jack Dorsey’s company Block is focusing on Bitcoin mining and reducing its investment in other areas.
- The TBD division, which is dedicated to developing the Web5 decentralized platform, will be closed.
- The company reported third-quarter revenue below estimates.
Block, founded by Jack Dorsey and known for its digital payments and financial services, has announced a change of strategy to focus on Bitcoin mining and the development of its non-custodial Bitkey wallet, scheduled for next year.
This strategic change involves a reduction in its investment in the music streaming service Tidal and the definitive closure of TBD, the division in charge of creating the Web5 platform, a project that sought to introduce a decentralized platform.
The restructuring has also brought with it layoffs in both divisions, continuing a staff adjustment that had begun in December 2023 with a 10% reduction in its workforce.
The information was disclosed in the third quarter shareholder letter, disclosed on November 7.
In it, Block highlighted that the mining division responds to a “strong alignment with market needs” and that it has “robust projected demand.”
With the decision to focus on Bitcoin mining, Block is reinforcing its commitment to Bitcoin infrastructure, a move that reflects Jack Dorsey‘s vision of financial decentralization.
The company completed the design of its 3-nanometer mining chip last April, and in July signed a deal with Core Scientific to supply the company with its latest high-tech chips.
This mining system aims to support the decentralization of the Bitcoin network, a purpose aligned with Dorsey‘s decentralizing philosophy.
Despite these advances, Block reported revenue for the third quarter of $5.98 billion, below analysts expectations of $6.24 billion.
Renewed focus on mining and internal changes at Block
A Block spokesperson commented on the changes, stressing that while adjustments have been made to the Tidal team, the company remains committed to supporting artists in meaningful ways.
Additionally, Block remains committed to the open source community, despite the closure of the TBD brand and its investment in that business.
Block’s new direction not only strengthens its presence in the Bitcoin mining sector, but also optimizes its resources, channeling them into areas where it can leverage its technological strengths and vision for the future of decentralized finance.
With this strategy, Dorsey and his team seek to adapt to market demands, making Bitcoin mining their main focus.
While this transformation reduces the diversity of its investments, it reinforces its mission to expand the Bitcoin infrastructure.
The company thus aims to consolidate its position as a key player in Bitcoin mining technology, while reorganizing its operations to optimize its impact and response to the needs of a constantly evolving market.
