The post Block Inc. shifts focus to Bitcoin mining amid plans to sunset Web5-focused TBD appeared on BitcoinEthereumNews.com.

Jack Dorsey founded payments firm Block Inc. is pivoting its focus towards the cryptocurrency mining sector. In a Nov. 7 shareholder letter, Block, formerly Square Inc., said it would dial down resources towards its music streaming service TIDAL, and sunset TBD, a venture focusing on decentralizing the internet, to focus on expanding its presence in the Bitcoin mining sector. Block acquired TIDAL in a 2021 acquisition for roughly $300 million, as the streaming service was facing stiff competition and failing to gain traction. The platform has continued to struggle, with reports indicating workforce reductions and a $132.3 million impairment charge. Meanwhile, TBD, a subsidiary of Block, set out to create a decentralized web experience in 2022 which it dubbed Web5. It is not clear why the company intends to shut down operations. The timing of Block’s announcement coincides with Donald Trump winning the U.S. presidential election. Recall that in June, Trump said he’d like to see all remaining Bitcoin mined in the U.S., highlighting its potential to help the country dominate the energy sector. The news was a big boost for Bitcoin mining stocks and brought some energy back to a sector that’s been struggling with profits since this year’s halving slashed mining rewards by half. Block seems to be positioning itself to capitalize on the renewed momentum in the U.S. mining sector, which it believes has “a healthy pipeline of demand.” While Block doesn’t mine Bitcoin directly, it develops mining equipment through its Proto initiative. Earlier this year, the company revealed it had developed a 3-nanometer mining chip, which prominent Bitcoin miner Core Scientific has decided to incorporate into its operations. Block will also allocate a portion of the restructured resources towards its self-custodial hardware wallet offering Bitkey, the letter noted. Launched in March 2024, the device lets users…

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Filed under: News - @ November 8, 2024 8:19 am