Block is significantly reducing its investment in music streaming service TIDAL to focus more heavily on Bitcoin mining operations, according to a recent shareholder letter. The company is also shuttering TBD, its Bitcoin-focused division that was working on decentralized internet technology.

Block plans to redirect resources toward two key Bitcoin initiatives:

• Bitcoin mining operations, which the company says has "strong product market fit"
• Bitkey, their self-custody Bitcoin wallet

This strategic shift has already resulted in layoffs at TIDAL, with potentially more to come. The company has also reportedly instructed employees to avoid mentioning board member Jay-Z in internal communications, following his appointment after Block's acquisition of TIDAL in 2021.

During a recent virtual all-hands meeting, CEO Jack Dorsey disabled anonymous questions - a departure from typical company practice - and addressed what he perceived as employee negativity by asking staff to focus on why they're happy to work at Block.

The company's pivot away from TIDAL raises questions about the streaming service's future within Block's portfolio as the company doubles down on its cryptocurrency focus.

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