SAN FRANCISCO — Block Inc., led by CEO Jack Dorsey, is scaling back its investment in TIDAL, the music streaming service previously owned by Jay-Z, according to a shareholder letter released Thursday. The company also announced it is shutting down TBD, its Bitcoin-centered initiative aimed at building a decentralized internet, also referred to as “Web5.”
This strategic shift will enable Block to channel more resources into its growing Bitcoin mining operations and the development of Bitkey, a self-custody crypto wallet. “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.”
The move is part of broader cost-cutting measures at Block, the parent company of Square and Cash App. Recent reports by Fortune indicate the company has implemented layoffs and advised staff to avoid discussing board member Jay-Z in emails and Slack channels.
