Hindenburg Research, the same firm whose report in January led to a stock rout in all 10 Adani-related companies, has targeted Jack Dorsey’s financial services company, Block, alleging that the company’s digital payments platform Cash App is facilitating fraudsters taking advantage of government stimulus programmes during the pandemic. The new report has led to a 20% decline in Block’s shares, which fell to $58.31. Here are five facts about the company:
- Previously known as Square, the company was launched in 2009 as a credit card reader for vendors and customers that could be plugged into mobile phones. It also allowed tablet computers to make payments.
- In 2013, Square Cash was launched as a competitor to Venmo, a mobile service payment company. It was later renamed as Cash App, which customers could use to transfer funds. Square expanded further to offer short-term loans in 2014. In 2017, Square introduced Cash Card, a prepaid debit card that can be used outside the virtual wallet.
- In 2018, Cash App allowed users to trade Bitcoin on the platform. The following year, the company added the feature of free stock trading.
- After acquiring Australia’s Afterpay in 2021 for $30 billion, the company added Buy Now, Pay Later option. In December of the same year, Square was rebranded as Block to reflect the financial service company’s broader cryptocurrency and blockchain aspirations.
- In 2022, Jack Dorsey renounced the CEO title, opting for the name ‘Block Head’ instead. However, the role entails the same responsibilities. The company laws
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