Block, the payment company led by Jack Dorsey, announced shifts in priorities, including increased support for Bitcoin mining and Bitkey wallet. The decision came after Trump's election, who promised a more crypto-friendly environment.
Changes in Block's strategy
Block has announced a commitment to allocate more resources to Bitcoin mining and the Bitkey wallet, abandoning the Web5 TBD project, and downsizing investments in the music streaming service Tidal. These changes followed the new president-elect's promises to enhance conditions for the crypto industry.
Block and ASIC chip production
Block continues its investment in Bitcoin mining through the Block Proto team, focusing on ASIC chip production. In July, it started collaborating with Core Scientific for new nanometer ASIC miners. Block Proto sees its partnership with Core Scientific as crucial for mining decentralization.
Bitcoin mining profitability post-halving
Bitcoin mining profitability has been on the decline since the April halving. A JP Morgan report in September highlighted the third consecutive decline in profitability. Increasing mining difficulty and Bitcoin network hashrate are primary factors affecting earnings, with August profits hitting $43,600 and reaching a new low of $42,100 in September.
Block is decisively shifting its business focus towards more lucrative avenues in Bitcoin mining and creating a decentralized infrastructure despite challenges of decreasing profitability.
