Block, Jack Dorsey’s fintech firm, is closing TBD, its Bitcoin-focused subsidiary previously tasked with developing a decentralised internet known as “Web5.”
The move, outlined in a recent shareholder letter, accompanies a scaling back of Block’s investment in Tidal, the music streaming service the company acquired from Jay-Z in 2021.
By shutting down TBD, Block aims to streamline its operations and concentrate on high-demand areas within its business, particularly Bitcoin mining and Bitkey, its self-custody wallet for Bitcoin.
“We are scaling back our investment in TIDAL and winding down TBD,” Block shared in the letter. “This gives us room to invest in our bitcoin mining initiative, which has strong product market fit and a healthy pipeline of demand, and Bitkey, our self-custody wallet for bitcoin.”
This latest restructuring follows other cost-cutting moves by Block, which recently laid off employees. Reports indicate the company has also advised employees to avoid discussing board member Jay-Z in internal emails and messages on platforms like Slack, according to Fortune.
Block’s realignment underscores its strategic shift toward Bitcoin, a longstanding priority for CEO Jack Dorsey, a vocal proponent of cryptocurrency and blockchain technology.
The company’s new focus positions it to deepen its influence in the cryptocurrency space while consolidating resources to meet rising demand in Bitcoin mining and digital asset management.
