Block has been growing at a breakneck pace and surpassed $100 billion in market value in 2021..
US investment group Hindenburg Research has targeted former Twitter CEO Jack Dorsey. The Hindenburg report said Mr Dorsey’s mobile payments firm Block “widely overstated” its user base.
Here are five facts on Block:
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It was co-founded by Mr Dorsey in 2009. Formerly known as Square, Block became famous by launching a sleek and small credit card reader that became popular among vendors. The firm fetched nearly $3 billion valuation when it listed on the stock exchange in 2015, said the BBC.
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The renaming was done in 2021 with an intention to reflect the growing side of its business – Cash App. The tech company operates financial transactions, ranging from payments to merchants to payments between individuals. The company also offers point-of-sales systems and an app that allows people to trade cryptocurrency.
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Cash App was the focus of Hindenburg’s year-long research, with the firm claiming the app was used to facilitate millions in fraudulent pandemic relief payments from the US government. The company has rejected all the claims but the Hindenburg report sent its shares tumbling 15 per cent.
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Cash App allows users to transfer money through a mobile application. It had 51 million monthly transacting actives, a 16 per cent year-over-year increase during December 2022, Block said in a fourth-quarter earnings letter as per a Reuters report.
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Block has been growing at a breakneck pace and surpassed $100 billion in market value in 2021. It is currently worth $38 billion.
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