Jack Dorsey, CEO of Block Inc. (formerly Square), has announced plans to expand the company’s involvement in Bitcoin mining.

In a recent shareholder letter, Dorsey emphasized a renewed focus on Bitcoin, detailing intentions to develop new mining hardware and allocate 10% of Bitcoin gross profit towards Bitcoin acquisitions.

Block Inc. reported first-quarter earnings of 74 cents per share, surpassing analyst expectations of 72 cents, and generated revenue of $5.96 billion, exceeding forecasts of $5.83 billion. The company also raised its full-year gross profit guidance to $8.78 billion, reflecting strong financial performance.

Analysts have responded positively to Block’s strategic direction. BTIG, Seaport Research Partners, and Needham analysts maintained their Buy ratings and increased their price targets for Block stock, citing operational strength, improving profitability, and potential growth driven by product innovation and Bitcoin activities.

In addition to financial achievements, Block has entered the crypto mining hardware sector by securing a significant deal to supply Bitcoin miner Core Scientific with its chips. While financial details remain undisclosed, J.P. Morgan estimates the deal’s revenue could reach $225 million to $300 million, highlighting Block’s potential leadership in the crypto hardware ecosystem.

Block’s strategic initiatives underscore a commitment to advancing Bitcoin mining technology and expanding its presence in the cryptocurrency sector. These efforts aim to enhance the company’s financial performance and contribute to the broader adoption and decentralization of Bitcoin mining.