Block Shifts Focus to Bitcoin Mining Equipment and Self-Custody Wallet
Jack Dorsey’s payment company, Block (formerly Square), is doubling down on its bitcoin mining hardware development and self-custody cryptocurrency wallet, Bitkey. To fund these initiatives, the firm will wind down its decentralized internet project, Web5, and reduce investment in music streaming platform Tidal.
This strategic pivot comes amid challenging profitability for bitcoin miners following the 2024 halving event, which slashed mining rewards by 50%. The move also aligns with newly elected U.S. President Donald Trump’s pro-crypto campaign promises, including support for bitcoin mining.
Key Strategic Changes
- Expanding Bitcoin Mining Hardware: Block is accelerating development of its 3-nanometer mining chip and partnering with major miners like Core Scientific.
Scaling Back Non-Core Ventures:
- Discontinuing Web5 (TBD), a decentralized identity and data storage initiative.
- Reducing investment in Tidal, acquired in 2021 for $300 million.
- Boosting Self-Custody Solutions: Bitkey, Block’s hardware wallet, integrates with Cash App and Coinbase for seamless BTC transactions.
👉 Discover how Block’s mining chips could revolutionize the industry
Market Challenges and Opportunities
Bitcoin mining profitability has declined sharply post-halving, but Block sees long-term potential in supplying efficient hardware to miners. The company’s Q3 revenue missed estimates ($5.98B vs. $6.24B), triggering a 10% stock drop.
FAQ: Block’s Bitcoin Mining Strategy
Q: Why is Block exiting Web5?
A: Resources are being reallocated to higher-growth areas like mining hardware and Bitkey.
Q: How does Trump’s election impact bitcoin mining?
A: Trump pledged to foster domestic mining, potentially easing regulatory hurdles.
Q: What’s next for Bitkey?
A: The wallet aims to bridge self-custody with mainstream platforms like Cash App.
👉 Explore Bitkey’s secure self-custody features
Looking Ahead
Block’s restructuring reflects a sharper focus on bitcoin-centric products. With its mining chips gaining traction and Bitkey expanding adoption, the company positions itself as a key infrastructure provider in the evolving crypto economy.
Keywords:
- Bitcoin Mining
- Block (Square)
- Web5
- Bitkey
- Cryptocurrency Wallet
- Donald Trump Crypto Policy
- Halving Impact
- Decentralized Technology