OAKLAND, Calif. – Block, Inc. (NYSE: SQ), the parent company of Bitkey, announced the introduction of a new inheritance feature for its self-custody bitcoin wallet, Bitkey. This feature, which will begin rolling out next month, aims to provide a secure and simple method for Bitkey users to transfer their bitcoins to beneficiaries after the owner’s death. The full launch of the service is expected to be available to all Bitkey customers by January 2025.
The Bitkey Inheritance feature is designed to address the complexities of switching digital assets. Traditionally, individuals who own bitcoin have had to rely on a variety of workarounds, including memory-dependent passwords or complex instructions for their heirs. Bitkey’s new service simplifies this process, allowing wallet owners to designate a beneficiary who can claim the inheritance. The feature will be included with the purchase of every Bitkey hardware device, benefiting both new and existing customers.
To start the inheritance process, a Bitkey user sends an invitation to a chosen beneficiary through the Bitkey app. Upon acceptance, the inheritance plan is established, with the option for the user to change or remove beneficiaries at any time. It is important to note that beneficiaries are not aware of the specific amount of bitcoin they will inherit, as they cannot view or access the benefactor’s wallet.
A six month waiting period is required for an inheritance claim to prevent accidental or fraudulent claims. During this period, Bitkey will notify the original wallet owner of any initiated requests, allowing them to cancel if necessary. Initially, the inheritance feature will be limited to one beneficiary per wallet, and the beneficiary is required to set up their Bitkey wallet.
This announcement follows Bitkey’s recent recognition in TIME’s ‘Best Inventions of 2024’ list in the Privacy and Security category. Bitkey, known for its simple and secure approach to self-custody, allows users to manage their bitcoins without the stress of complex passwords or seed phrases.
The information for this article is based on a press release from Block, Inc. Bitkey’s new legacy feature represents the company’s ongoing commitment to improving user experience and security in the field of digital asset management.
In other recent news, Block Inc. showed impressive financial performance with a 19% increase in gross profit, reaching €2.25 billion. The company’s adjusted free cash flow also significantly improved to €1.5 billion from €945 million a year earlier. Block expects 14% year-over-year growth for Q4 2024.
In terms of analyst ratings, Bernstein maintains an Outperform rating on Block Inc. with a price target of €90.00. The company’s analysis highlights Gross Payment Volume (GPV) growth as a key indicator for the company’s stock performance. BMO Capital Markets also raised its price target for Block Inc. to €94, maintaining an Outperform rating on the shares.
In the company’s future plans, Block aims to reach the Rule of 40 by 2026, focusing on gross profit growth in the mid-20s and an adjusted operating income margin in the mid-20s. As part of its expansion efforts, the company plans to enhance its product offerings, including the launch of Afterpay on Cash Card. These recent developments highlight Block’s strategic direction and potential for continued growth.
InvestingPro Insights
Block, Inc.’s (NYSE: SQ) introduction of the Bitkey Inheritance feature aligns with its position as a prominent player in the Financial Services industry, as highlighted by InvestingPro Tips. This innovation could potentially contribute to this year’s expected net income growth, another insight provided by InvestingPro.
The company’s financial health appears robust, with InvestingPro Data showing a market capitalization of €56.17 billion and strong revenue of €23.86 billion in the trailing twelve months to Q3 2024. Block’s revenue growth of 14.75% during this period demonstrates its ability to expand its business, which could be further strengthened by innovative features such as Bitkey Inheritance.
InvestingPro Tips also indicates that Block stock has shown strong performance over the past month and three months, with the price approaching its 52-week high. This positive momentum could reflect investor confidence in the company’s strategic moves, such as Bitkey’s improvement.
It’s worth noting that Block doesn’t pay dividends to shareholders, instead focusing on growth and innovation. For investors interested in a more in-depth analysis, InvestingPro offers 8 additional tips that could provide additional insights into Block’s financial outlook and market position.
This article was generated and translated with the support of artificial intelligence and reviewed by an editor. For further information, please see our T&Cs.
How will the Bitkey Inheritance feature affect user trust and adoption rates for Block, Inc. in the digital asset management sector?
1. How do you see the introduction of the Bitkey Inheritance feature impacting Block, Inc.’s market position and user base in the digital asset management industry?
2. What key challenges had to be addressed in the development of this feature, and how did the company ensure the security and privacy of users’ information during the inheritance process?
3. Can you expand on the six-month waiting period and the requirement for beneficiaries to set up their own Bitkey wallets? Why did the company decide on these specific measures?
4. In what ways does the Bitkey Inheritance feature differentiate itself from other existing solutions in the market, and how does it align with Block, Inc.’s broader vision for the future of digital assets?
5. How do you think the recent achievements, such as recognition in TIME’s ‘Best Inventions of 2024’ list and improved financial performance, have influenced the perception of Block, Inc. in the industry and among potential investors?
6. Can you discuss the company’s plans to enhance product offerings and expand its presence in the payment solutions market? What role might Afterpay on Cash Card play in these efforts?
7. What are some of the key factors driving investor confidence in Block stock, including the recent price appreciation and positive market sentiment?
8. As a leader in the Financial Services industry, how does Block, Inc. plan to navigate ongoing regulatory changes and market uncertainties related to digital assets?
