In 2021, at the height of the crypto boom, Jack Dorsey—co-founder of Twitter and CEO of Block, formerly Square—made bold promises about the future of decentralized finance. With enthusiasm echoing across social media, he announced the creation of TBD, a new business unit dedicated to building an open, user-controlled web powered by Bitcoin. "Our primary focus is #Bitcoin," Dorsey declared on Twitter, framing the initiative as a foundational step toward a more equitable digital economy.
Fast forward to 2025, and that vision has significantly narrowed. During Block’s Q3 earnings call, CFO Amrita Ahuja confirmed the company is “winding down” its TBD efforts—a clear retreat from its once-ambitious Web5 roadmap. While Block continues to hold $630 million in Bitcoin and remains committed to select crypto projects like Bitkey, its strategic pivot signals a major recalibration in response to market pressures and investor demands.
The Rise and Retreat of Web5
TBD was more than just a crypto experiment—it was positioned as Block’s answer to centralized internet platforms. Dubbed Web5, the project aimed to merge decentralized identity with Bitcoin-based payments, giving users full control over their data and digital assets without relying on corporate intermediaries.
At its peak, Web5 was hailed by Dorsey as potentially “our most important contribution to the internet.” Developers were invited to build non-custodial, permissionless financial tools using Block’s open-source frameworks. The rebranding of Square to Block in December 2021 further cemented this crypto-forward identity, with “block” referencing both blockchain technology and modular software architecture.
Yet three years later, the momentum has stalled. Recent layoffs have hit TBD hard, with most of its team let go. The company is now shifting focus toward core revenue-generating services, particularly small business lending and embedded financial products.
Investor Pressure and Market Realities
The reversal didn’t happen in isolation. By 2022, macroeconomic conditions had shifted dramatically. Soaring inflation and rising interest rates led investors to prioritize profitability over long-term bets. As crypto markets crashed—Bitcoin shedding over 75% from its all-time high—public scrutiny intensified on companies with speculative ventures.
Block’s stock reflected this shift. After peaking in 2021, shares lost more than 80% of their value before stabilizing in late 2023. Shareholders began demanding faster returns, pushing management to streamline operations. In late 2023, Block announced plans to cut up to 1,000 jobs—roughly 8% of its workforce—by the end of 2024.
This cost-conscious strategy extended beyond TBD. The company also scaled back investment in Tidal, the music streaming service acquired for $300 million in 2021, further indicating a retreat from Dorsey’s broader ecosystem ambitions.
A Narrower Focus on Core Financial Services
Today, Block’s strategy centers on practical, scalable financial tools—not revolutionary internet overhauls. In his latest shareholder letter, Dorsey devoted nearly 1,400 words to the company’s lending products, especially its buy now, pay later (BNPL) offerings through Afterpay, which it acquired for $29 billion.
Notably absent? Any mention of crypto, Bitcoin, or Web5.
While Dorsey reiterated during the earnings call that Block remains committed to making Bitcoin “more accessible,” the emphasis is now on utility rather than ideology. The company will continue supporting peer-to-peer Bitcoin transactions via Cash App, develop its self-custody wallet Bitkey, and invest in U.S.-based Bitcoin mining operations.
But these are measured steps—not moonshots.
Strategic Shifts vs. Abandonment
It’s important to clarify: Block hasn’t abandoned Bitcoin. It still holds a substantial position on its balance sheet, and Dorsey continues to advocate for a decentralized financial future. His belief in “an internet with a native currency” remains intact—because it enables faster cross-border payments and broader product accessibility.
What’s changed is the execution timeline and resource allocation. Instead of betting big on unproven platforms like Web5, Block is focusing on integrating Bitcoin where it already works: as a transferable asset within existing consumer apps.
This mirrors a broader industry trend. Many early Web3 ventures have pivoted toward real-world use cases after failing to gain mainstream traction. The dream of decentralization hasn’t died—it’s just maturing.
Core Keywords and Strategic Positioning
Through this evolution, several core keywords emerge as central to understanding Block’s current direction:
- Bitcoin
- Web5
- Block
- Cash App
- Bitkey
- Decentralized finance
- Fintech innovation
- Cryptocurrency strategy
These terms reflect both the legacy of Dorsey’s original vision and the pragmatic adjustments now guiding the company. They also align closely with search intent around fintech trends, crypto adoption challenges, and corporate strategy shifts in tech.
Frequently Asked Questions
Q: Is Block completely exiting the crypto space?
A: No. While it’s winding down TBD and Web5 development, Block still supports Bitcoin through Cash App, Bitkey wallet, and mining initiatives. Its approach is now more focused and incremental.
Q: Why did Jack Dorsey step back from Web5?
A: Investor pressure, declining stock performance, and lack of immediate commercial viability led to a strategic refocus on profitable core services like lending and BNPL.
Q: Does Block still own Bitcoin?
A: Yes. The company holds Bitcoin worth approximately $630 million and has no plans to sell its holdings.
Q: What is Bitkey by Block?
A: Bitkey is a self-custodial Bitcoin wallet designed for ease of use and security, allowing users to control their private keys while accessing Bitcoin services seamlessly.
Q: Will Web5 ever come back?
A: There’s no current indication of revival. While the concept may influence future projects, active development has been paused indefinitely.
Q: How does Block plan to make Bitcoin more accessible?
A: Through simplified peer-to-peer transactions in Cash App, user-friendly wallets like Bitkey, and infrastructure investments such as domestic mining operations.
👉 Explore how next-gen wallets are reshaping user access to Bitcoin and decentralized finance today.
Looking Ahead
Jack Dorsey’s scaled-back crypto ambitions reflect a larger reality: visionary ideas need sustainable business models to survive. While the fire of Web5 may have dimmed, the underlying belief in Bitcoin as internet money endures.
For now, Block is choosing stability over speculation—building incrementally rather than revolutionizing overnight. Whether this caution pays off will depend on how well it balances innovation with accountability in the eyes of both users and Wall Street.