Block, the fintech company founded by Jack Dorsey, announced in a shareholder letter on Thursday that it is reducing its investment in TIDAL, the music streaming service previously owned by Jay-Z. Additionally, Block is shutting down TBD, its Bitcoin-focused division that had aimed to create a decentralized internet, known as “Web5.”
In the letter, Block explained that these cuts would allow the company to focus more on its Bitcoin mining operations and its crypto wallet, Bitkey. “We are scaling back our investment in TIDAL and winding down TBD,” Block stated. “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.”
These changes are part of Block’s broader cost-cutting strategy, which has already included recent staff layoffs. According to Fortune, Block has also reportedly instructed employees not to reference Jay-Z, a company board member, in internal communications like emails or Slack messages.
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