Jack Dorsey's payment firm Block (SQ) is shifting its strategy to concentrate on manufacturing equipment for Bitcoin miners and enhancing its self-custody crypto wallet. This pivot comes at the cost of discontinuing their decentralized internet initiative named Web5 and reducing investment in the music streaming service Tidal.

This decision aligns with the recent U.S. presidential election results, where Donald Trump has projected a more favorable landscape for cryptocurrencies. His commitment to supporting Bitcoin mining could invigorate an industry that has faced significant challenges due to decreased profitability following the halving event earlier this year, which halved mining rewards.

Block announced, "We are scaling back our investment in TIDAL and winding down TBD [the division developing Web5]. 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," in their third-quarter shareholder letter.

In line with previous plans, Block aims to cut workforce by up to 10% by the end of 2024. The firm recently reported that their revenue for the third quarter was $5.98 billion, falling short of analysts' predictions of $6.24 billion, which has negatively impacted their stock price.

While Block itself does not engage in Bitcoin mining, it sells mining equipment to those in the industry and aims to develop its mining technology, including a recently announced 3-nanometer mining chip. This shift represents a critical juncture for Block as it navigates the evolving cryptocurrency landscape.