Jack Dorsey, one of the co-founders of Twitter, made waves in the crypto world during the summer of 2021 with his ambitious plans for his company, Square. He announced the formation of a new business unit that aimed to provide non-custodial, permissionless, and decentralized financial services, with a primary focus on Bitcoin. This new venture was dubbed TBD, with the intention of creating a more secure and private internet through Web5.
However, fast forward three years, and Dorsey and Block are taking a step back. During Block’s third-quarter earnings call, it was revealed that the company would be winding down its TBD efforts. This decision comes in the midst of a changing landscape on Wall Street, with shareholders demanding quicker returns on their investments.
Despite this shift in focus, Block continues to hold a significant amount of Bitcoin on its balance sheet, with plans to invest in a Bitcoin mining initiative and its Bitcoin wallet, Bitkey. The company remains committed to making Bitcoin more accessible to users, with a vision of creating a native currency for the internet.
In response to questions about the company’s current Bitcoin strategy, Dorsey highlighted the importance of accessibility and peer-to-peer transactions. He emphasized the need for a native internet currency to facilitate faster money transfers and expand Block’s product offerings to new markets.
As Block navigates these changes, it has also made significant adjustments to its workforce and investment portfolio. The company announced plans to reduce its headcount by up to 1,000 employees by the end of 2024, with a significant number of TBD employees already laid off. Additionally, Block is scaling back its investment in Tidal, the music-streaming service it acquired as part of TBD.
While Wall Street’s sentiment towards crypto may be shifting, Dorsey remains focused on the company’s lending offerings for small businesses, particularly the buy now, pay later product from Afterpay, acquired for $29 billion in 2021. Despite the challenges and changes facing Block, Dorsey’s commitment to innovation and financial inclusion remains unwavering.
The evolving landscape of the crypto industry and the demands of shareholders have forced Block to reassess its priorities and make tough decisions. However, with a strong foundation in Bitcoin and a vision for a more accessible and decentralized financial future, Block continues to adapt and evolve in response to changing market conditions.
