Fintech

Don’t think of it as leaving Twitter. Jack Dorsey’s going all in on crypto.

Bitcoin unleashed a huge wave, and Dorsey — no longer doing double duty at Twitter and Square — wants to ride it.

Jack Dorsey at the Bitcoin 2021 Convention

There’s still time for Square to expand its crypto footprint, though, which makes the timing of Dorsey’s move significant.

Photo: Joe Raedle/Getty Images

Jack Dorsey’s sudden exit from Twitter underlines the tech pioneer’s growing fixation with crypto — a passion that has forced a sudden resolution of the odd situation of a single individual leading two large tech companies.

It’s now clear that Square is Dorsey’s favorite child and needs all of his attention to advance the role it could play in popularizing bitcoin, the best-known cryptocurrency.

"If I were not at Square or Twitter I'd be working on bitcoin," Dorsey said at a cryptocurrency conference in Miami in June. At the time, he said “both companies have a role to play.”

But Twitter’s presence in the crypto world has proven minimal, despite efforts like letting users accept tips in bitcoin and hiring Tess Rinearson to lead a crypto team. Twitter’s CFO recently dissed the idea of holding bitcoin in its corporate treasury.

Square, meanwhile, has been riding the crypto wave since its Cash App added bitcoin trading almost four years ago. By 2021, 1 million Square users were buying bitcoin for the first time on Cash App. Square announced in February that 5% of Square’s total cash was in bitcoin.

In June, Blockstream, the bitcoin mining company, announced that Square was investing $5 million in a solar-powered mining operation. In July, Dorsey said Square was building “a new business” that would operate alongside divisions like Cash App and Tidal to build tools for developers, focused on bitcoin.

Square also helped set up the Cryptocurrency Open Patent Alliance, which aims to defend the industry against patent trolls.

Recently, Square also announced that it was developing its own hardware crypto wallet “to make bitcoin custody more mainstream.”

“Bitcoin is for everyone,” Dorsey said in a tweet. “It’s important to us to build an inclusive product.”

Despite those moves, Square remains a relative newbie in crypto. Bitcoin trading has juiced its revenue lately, but it’s going up against nimbler, faster-moving competitors like Coinbase and Robinhood.

“Jack wants all in on crypto,” Constellation Research analyst Ray Wang told Protocol. “He doesn’t want to miss the next big thing.”

One challenge for Dorsey and Square is his well-known allegiance to bitcoin, which is increasingly just one cryptocurrency among many, and not the most technically sophisticated one. Wang says Square needs “to be in the middle of smart contracts,” a technology most firmly established on the Ethereum blockchain. A coming upgrade to bitcoin called Taproot promises to facilitate smart contracts using bitcoin, but it would seem smarter to spread one’s bets.

There’s still time for Square to expand its crypto footprint, though, which makes the timing of Dorsey’s move significant. “It’s early in the marketplace,” Wang said. “This space will be won by a few players. We are in 1997 for the internet.”

SKOREA-ENTERTAINMENT-GAMING-MICROSOFT-XBOX
A visitor plays a game using Microsoft's Xbox controller at a flagship store of SK Telecom in Seoul on November 10, 2020. (Photo by Jung Yeon-je / AFP) (Photo by JUNG YEON-JE/AFP via Getty Images)

On this episode of the Source Code podcast: Nick Statt joins the show to discuss Microsoft’s $68.7 billion acquisition of Activision Blizzard, and what it means for the tech and game industries. Then, Issie Lapowsky talks about a big week in antitrust reform, and whether real progress is being made in the U.S. Finally, Hirsh Chitkara explains why AT&T, Verizon, the FAA and airlines have been fighting for months about 5G coverage.

For more on the topics in this episode:

Keep Reading Show less
David Pierce

David Pierce ( @pierce) is Protocol's editorial director. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

COVID-19 accelerated what many CEOs and CTOs have struggled to do for the past decade: It forced organizations to be agile and adjust quickly to change. For all the talk about digital transformation over the past decade, when push came to shove, many organizations realized they had made far less progress than they thought.

Now with the genie of rapid change out of the bottle, we will never go back to accepting slow and steady progress from our organizations. To survive and thrive in times of disruption, you need to build a resilient, adaptable business with systems and processes that will keep you nimble for years to come. An essential part of business agility is responding to change by quickly developing new applications and adapting old ones. IT faces an unprecedented demand for new applications. According to IDC, by 2023, more than 500 million digital applications and services will be developed and deployed — the same number of apps that were developed in the last 40 years.[1]

Keep Reading Show less
Denise Broady, CMO, Appian
Denise oversees the Marketing and Communications organization where she is responsible for accelerating the marketing strategy and brand recognition across the globe. Denise has over 24+ years of experience as a change agent scaling businesses from startups, turnarounds and complex software companies. Prior to Appian, Denise worked at SAP, WorkForce Software, TopTier and Clarkston Group. She is also a two-time published author of “GRC for Dummies” and “Driven to Perform.” Denise holds a double degree in marketing and production and operations from Virginia Tech.
Policy

Congress’ antitrust push has a hate speech problem

Sen. Klobuchar’s antitrust bill is supposed to promote competition. So why are advocates afraid it could also promote extremists?

The bill as written could make it a lot riskier for large tech companies to deplatform or demote companies that violate their rules.

Photo: Photo by Elizabeth Frantz-Pool/Getty Images

The antitrust bill that passed the Senate Judiciary Committee Thursday and is now headed to the Senate floor is, at its core, an attempt to prevent the likes of Apple, Amazon and Google from boosting their own products and services on the marketplaces and platforms they own.

But upon closer inspection, some experts say, the bill as written could make it a lot riskier for large tech companies to deplatform or demote companies that violate their rules.

Keep Reading Show less
Issie Lapowsky

Issie Lapowsky ( @issielapowsky) is Protocol's chief correspondent, covering the intersection of technology, politics, and national affairs. She also oversees Protocol's fellowship program. Previously, she was a senior writer at Wired, where she covered the 2016 election and the Facebook beat in its aftermath. Prior to that, Issie worked as a staff writer for Inc. magazine, writing about small business and entrepreneurship. She has also worked as an on-air contributor for CBS News and taught a graduate-level course at New York University's Center for Publishing on how tech giants have affected publishing.

Boost 2

Can Matt Mullenweg save the internet?

He's turning Automattic into a different kind of tech giant. But can he take on the trillion-dollar walled gardens and give the internet back to the people?

Matt Mullenweg, CEO of Automattic and founder of WordPress, poses for Protocol at his home in Houston, Texas.
Photo: Arturo Olmos for Protocol

In the early days of the pandemic, Matt Mullenweg didn't move to a compound in Hawaii, bug out to a bunker in New Zealand or head to Miami and start shilling for crypto. No, in the early days of the pandemic, Mullenweg bought an RV. He drove it all over the country, bouncing between Houston and San Francisco and Jackson Hole with plenty of stops in national parks. In between, he started doing some tinkering.

The tinkering is a part-time gig: Most of Mullenweg’s time is spent as CEO of Automattic, one of the web’s largest platforms. It’s best known as the company that runs WordPress.com, the hosted version of the blogging platform that powers about 43% of the websites on the internet. Since WordPress is open-source software, no company technically owns it, but Automattic provides tools and services and oversees most of the WordPress-powered internet. It’s also the owner of the booming ecommerce platform WooCommerce, Day One, the analytics tool Parse.ly and the podcast app Pocket Casts. Oh, and Tumblr. And Simplenote. And many others. That makes Mullenweg one of the most powerful CEOs in tech, and one of the most important voices in the debate over the future of the internet.

Keep Reading Show less
David Pierce

David Pierce ( @pierce) is Protocol's editorial director. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

Workplace

Ask a tech worker: How many of your colleagues have caught omicron?

Millions of workers called in sick in recent weeks. How is tech handling it?

A record number of Americans called in sick with COVID-19 in recent weeks. Even with high vaccination rates, tech companies aren’t immune.

Illustration: Christopher T. Fong/Protocol

Welcome back to Ask a Tech Worker! For this recurring feature, I’ve been roaming downtown San Francisco at lunchtime to ask tech employees about how the workplace is changing. This week, I caught up with tech workers about what their companies are doing to avoid omicron outbreaks, and whether many of their colleagues had been out sick lately. Got an idea for a future topic? Email me.

Omicron stops for no one, it seems. Between Dec. 29 and Jan. 10, 8.8 million Americans missed work to either recover from COVID-19 or care for someone who was recovering, according to the Census Bureau. That number crushed the previous record of 6.6 million from last January, and tripled the numbers from early last month.

Keep Reading Show less
Allison Levitsky
Allison Levitsky is a reporter at Protocol covering workplace issues in tech. She previously covered big tech companies and the tech workforce for the Silicon Valley Business Journal. Allison grew up in the Bay Area and graduated from UC Berkeley.

The fast-growing paychecks of Big Tech’s biggest names

Tech giants had a huge pandemic, and their execs are getting paid.

TIm Cook received $82 million in stock awards on top of his $3 million salary as Apple's CEO.

Photo: Mario Tama/Getty Images

Tech leaders are making more than ever.

As tech giants thrive amid the pandemic, companies like Meta, Alphabet and Microsoft have continued to pay their leaders accordingly: Big Tech CEO pay is higher than ever. In the coming months, we’ll begin seeing a lot of companies release their executive compensation from the past year as fiscal 2022 begins.

Keep Reading Show less
Nat Rubio-Licht
Nat Rubio-Licht is a Los Angeles-based news writer at Protocol. They graduated from Syracuse University with a degree in newspaper and online journalism in May 2020. Prior to joining the team, they worked at the Los Angeles Business Journal as a technology and aerospace reporter.
Latest Stories
Bulletins