Block, the financial payments processor co-founded by Jack Dorsey, has introduced a self-custody Bitcoin wallet named "Bitkey." This wallet, available as a mobile app or hardware storage, is accessible in over 95 countries, as announced on December 7. Bitkey boasts a two-thirds multi-signature wallet structure, comprising mobile keys, hardware keys, and server keys. It ensures security through secure hardware and recovery mechanisms in case of loss, necessitating the user's fingerprint and mobile phone for transaction approval. Notably, Coinbase and Cash App are among Bitkey's initial global partners.
The security of Bitkey relies on three keys to safeguard bitcoins, requiring any two keys to collaborate for moving bitcoins or authorizing security-related actions like initiating recovery or altering security settings, Block explained. Emphasizing security, Block clarified that Bitkey only has access to one key within the 2-of-3 multisig wallet, making it impossible to access or move a customer's Bitcoin without the required keys. The Bitkey package, comprising application and hardware storage, costs $150 (excluding shipping and tax), currently open for pre-orders and expected to launch in early 2024.
In the third quarter of 2023, Block recorded $5.62 billion in revenue, primarily driven by robust sales growth at payment processors Cash App and Square. Additionally, the company reaped a $44 million profit from its Bitcoin investments, capitalizing on BTC's recent price recovery. Moreover, Block reported a 22% year-over-year increase in Bitcoin trading gross profit, amounting to $45 million, and sold $2.42 billion worth of Bitcoin to customers through Cash App.
