Jack Dorsey’s company is reorganizing its operations, focusing on the mining industry and scaling back investments in Tidal and TBD.
Block, the financial services and digital payments company founded by Jack Dorsey, has announced an increase in investments in Bitcoin mining and in developing the non-custodial Bitkey wallet for next year.
In the third-quarter shareholder letter published on November 7, Block highlighted how the mining division demonstrates ‘a strong alignment with market needs’ and ‘a robust demand pipeline.’
The decision to focus on mining has led the company to scale back investments in the music streaming app Tidal and to shut down TBD, the division dedicated to developing the decentralized platform called Web5. In recent days, layoffs have begun in both divisions, following a 10% workforce reduction carried out last December.
A Block spokesperson stated:
“While we don’t comment on specific numbers, we have made some internal changes to our Tidal team to focus on serving artists in the most meaningful way. We’re winding down TBD, inclusive of the brand and investment in the business, while remaining committed to the open source community.”
Last April, the company completed the design of its 3-nanometer mining chip, announcing plans to build a complete mining system to support network decentralization. In July, Block entered a partnership with Core Scientific to supply the company with its latest-generation chips.
In the third quarter, Block reported revenues of $5.98 billion, below analysts’ estimates of $6.24 billion.
