Tech
Reddit’s Jack Dorsey’s Block Reveals Crypto Investment Details as Tech Firms Begin Experimenting with Web3
2023 has brought the cryptocurrency industry face to face with regulatory and macroeconomic challenges, which have kept the prices of most cryptocurrencies relatively low. Despite the volatility the industry has seen over the past year, several companies have not lost hope in their crypto endeavors. Social networking platform Reddit AND Block, Jack Dorsey’s fintech company are two names that have recently disclosed information regarding their investments and holdings in BTC, which have produced profits for both.
The current cryptocurrency market cap is close to $2 trillion (approximately Rs. 1,65,78,200 crore) with Bitcoin currently trading at $51,017 (approximately Rs. 42.2 lakh crore). The cryptocurrency sector has seen a rise in valuation so far in 2024. Bitcoin was trading at $43,064 (approximately Rs. 35.8 lakh crore) in December last year.
In new filings, both Reddit and Block have disclosed their investments in Bitcoin, ETand more cryptocurrencies.
In a filing with the US Securities and Exchange Commission (SEC), Reddit said that it had purchased Bitcoin and Ether from the excess cash it had managed to save. While the platform did not disclose the exact value of the Bitcoins it had purchased, the filing showed that Reddit had managed to hold $1.3 billion (around Rs 10,778 crore) in cash at the close of 2023, a relationship Coindesk said on Friday, February 23.
With this, Reddit has become one of the few companies alongside Microstrategy AND Tesla who directly invested his liquid assets in the purchase of BTC and ETH.
To block
Jack Dorsey, founder and former CEO of Twitter (now X)announced the fourth-quarter earnings of his fintech firm Block on Thursday. The filings revealed that Block held 8,038 BTC worth $340 million (roughly Rs 2,818 crore) as of December 31, 2023. Currently, the value of these tokens stands at $409 million (roughly Rs 3,398 crore).
Dorsey also said that Block managed to produce $66 million (about 547 million rupees) through the sale of BTC tokens through its subsidiary, Cash App, marking a 90% increase compared to 2022.
“The year-over-year increase in Bitcoin revenue and gross profit was driven by an increase in the average market price of bitcoin, as well as a benefit from the appreciation in the price of our bitcoin inventory during the quarter,” Block said in a filing as per a separate relationship by Coindesk.
Cryptocurrency-focused investment bank Galaxy Digital Holdings, cryptocurrency brokerage Voyager Digital, and Bitcoin mining firm Marathon Digital are among other firms with cryptocurrency investments.
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