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Block is creating machines to mine bitcoin in a decentralized way.
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It will favor the line of decentralized technologies (TBD): wallets, mining apps, etc.
The company Block, created by Twitter creator Jack Dorsey, announced in a report that it will reinvest in its Bitcoin and open and decentralized technologies (TBD) product line, which consists of cutting-edge mining equipment (ASIC) and a bitcoin self-custody wallet, called Bitkey.
This business direction contrasts with that of other companies that operate in the field of Bitcoin mining, which have moved the computing power of their data centers to the artificial intelligence enhancement.
In a preliminary perspective of block reportBy 2025, the company wants this investment to develop its products for the decentralization of bitcoin mining. For example, the Mining Development Kit (MDK)designed to create innovative bitcoin mining applications, such as forms of heat reuse, off-grid mining, and intermittent power uses
As part of our emerging initiatives, we are refining our investments based on our progress. We are reducing our investment in TIDAL and returning to TBD. This gives us room to invest in our bitcoin mining initiative, which has strong product-market fit and a strong demand pipeline, and in Bitkey, our self-custody wallet for bitcoin.
Block, technology company.
TIDAL is a music and video streaming platform that offers high-fidelity audio and artist content. Block says he is rotating his investments from here to TBD.
Bitkey, for its part, is a bitcoin wallet with multi-signature capability that allows self-custody. It includes a mobile application that enables users to carry out bitcoin transactions, among other basic financial operations. It has a hardware device that serves as an additional layer of security when storing bitcoin keys offline.
Bitkey is a multi-signature wallet already available on the market. Fountain:
It should be noted that the companies that are dedicated to bitcoin mining depend on factors such as the BTC price, hashprice, mining difficulty and hashrate to generate profitability in the sector. As a “factory” of mining equipment, the income of Block and the creator of Twitter, now X, Jack Dorsey depends on the sale of these products, and not on the aforementioned factors.
However, Block’s bet remains “risky” given the transition of companies towards AI, because companies dedicated to this new field would be less willing to purchase expensive specialized equipmentthat is if BTC mining continues its “crisis” of profitability.
As reported by CriptoNoticias, the cost of mining a bitcoin went from USD 47,200 to USD 49,500 in the third quarter of 2024. These costs are very high for some mining companies, and exorbitant if you include some unaccounted for factors such as “depreciation and stock-based compensation.”according to Coinshares. Then, the average production of one bitcoin can increase to USD 96,100.
In addition to the services mentioned, Block offers Cash App, an application that allows users to buy, sell and store Bitcoin. It has also launched Spiral, an initiative focused on the development of open source projects related to Bitcoin. This seeks to improve the network infrastructure and support developers working on the development of the crypto asset with the largest market capitalization in the world.
