Nick Hodge,
Publisher
May 14, 2024
The bitcoin halving has come and gone.
And crypto prices, as is now expected, have been volatile surrounding the event.
Bitcoin has had a range greater than $16,000 over the past five weeks, with a high above $72,700 and a low close to $56,500.
Amid this short-term volatility to the downside, I have been looking to add crypto- and blockchain-related companies to my portfolio — miners, exchanges, and processors like Galaxy Digital (OTC: BRPHF), Coinbase (NASDAQ: COIN), and Block (NYSE: SQ).
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Because I am very keen on profiting from the longer-term and wider adoption of Bitcoin and its underlying blockchain technology. And that’s what I want to touch on today, through the lens of Block’s recent quarter report.
Block used to be called Square. That was back when its main product was a square dongle that made smartphones able to swipe a credit card. They were ubiquitous at farmers and flea markets, nail salons, barbershops, and other small vendors for years.
Founded (and still run) by Jack Dorsey, who also founded Twitter, Block now includes Square, Cash App, Spiral, Tidal, and TBD, which it describes thusly:
Square helps sellers more easily run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services.
Cash App is focused on redefining the world’s relationship with money by making it more relatable, instantly available, and universally accessible.
Spiral builds and funds free, open-source projects that advance the use of Bitcoin as a tool for economic empowerment.
TIDAL is a global platform for musicians and their fans that uses unique content, experiences, and services to bring fans closer to the artists they love and give artists the tools to succeed as entrepreneurs.
TBD is building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.
I bring this up because Jack Dorsey issued a letter to shareholders along with its earnings report this month. In it, he said that “each month we will be investing 10% of our gross profit from bitcoin products into bitcoin purchases.” His reasoning is that:
“We believe the world needs an open protocol for money, one that’s not owned or controlled by any single entity.
We believe bitcoin is the best and only candidate to be that protocol, and to
ultimately become the native currency of the internet.”
To that end, Block is increasingly focused on tools that make bitcoin more accessible, secure, and usable. Cash App, Dorsey tells us, “has had over 21 million actives use bitcoin” — a coincidental number, indeed.
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Ultimately, the company wants to “build cohesive and regulatory-compliant connections” from the current state of payments and transactions to the future, and of course charge fees along the way. That will be the aim of the TBD business unit, which has “created a protocol for on- and off-ramps from fiat to digital currencies that would allow anyone without a bank (~1.4 billion people) and with access to a mobile phone to participate in the larger global economy.” Global remittance, we’re told, is an $860 billion industry.
Speaking of numbers, which are almost lost in the futuristic discussion of non-fiat utopia, Block has invested $220 million into bitcoin that has grown by 160% to be worth $573 million presently.
It handily beat Q1 earnings estimates, with adjusted diluted earnings per share of $0.85 versus expectations of $0.71. It also increased full-year EBITDA guidance by $130 million to $2.76 billion.
The future of finance may be an open protocol. But Wall Street wants its share.
We want ours, too.
And we’re getting it.
As you may have heard, we are aiming to turn $50,000 into $1 million using crypto investments over the next two years.
That portfolio has already more than doubled under the guidance of Chris Curl.
This sector is going mainstream as Wall Street adopts bitcoin for global payments.
Early profits can still be had. And it’s easier than ever now that cryptos are being more widely used and accepted.
Even if you’re still not confident using them or investing in them, we can show you how to get set up step by step. And you can simply mirror the trades Chris is making with our Million Dollar Crypto Club portfolio.
It’s entirely risk-free to check out. This link will take you there.
Call it like you see it,
Nick Hodge
Publisher, Daily Profit Cycle