Twitter founder Jack Dorsey's payment platform Block (formerly Square) is about to join the S&P 500 index, a milestone that highlights the growing influence of digital payments and cryptocurrencies in mainstream finance. Block currently holds 8,584 Bitcoins, ranking eleventh among publicly traded companies. Since it began purchasing Bitcoin in 2020, according to data from Bitcointreasuries, its average cost is $30,405, with a return rate of up to 288% and unrealized gains of $750 million.
Block is officially included in the S&P 500 index
According to a press release issued by S&P Dow Jones Indices on Friday, Block Inc. (stock code XYZ) will replace Hess Corp. (stock code HES) as a component of the S&P 500 index before the market opens on July 23, after Hess was officially acquired by Chevron on July 18. Block's stock price rose by as much as 14% in after-hours trading, reporting at $79.1 before the deadline.
Being included in the US stock index benchmark can enhance a company's image, and with the growth of passive investment funds, being included in the constituent stocks can 'automatically penetrate into all portfolios', which includes traditional 401k plans, retirement funds, and a vast number of investors engaging in passive investments, thus increasing the likelihood of stock prices rising.
Block has expanded from payments to a financial technology company
Block has evolved from a payment processor into a broader financial technology company, providing peer-to-peer transfers, merchant services, and an increasing range of consumer loan services.
Earlier this year, Block's subsidiary Square Financial Services Inc. received approval from the Federal Deposit Insurance Corporation to start offering consumer loans directly through the Cash App Borrow product.
The company has also integrated Bitcoin payment functionality into its Square, reflecting Dorsey's long-standing advocacy for Bitcoin. He remains a highly influential figure in the field of digital assets and recently shared an open-source programming project on X.
Despite the company's efforts to address uneven profit results, Block remains committed to transforming Cash App into a comprehensive banking and lending product.
Monthly Bitcoin investments yield a return rate of up to 288%
Starting in April 2024, Block will invest 10% of its monthly gross profit from Bitcoin products into purchasing Bitcoin. Block currently holds 8,584 Bitcoins, ranking eleventh among publicly traded companies. Since it began purchasing Bitcoin in 2020, according to data from Bitcointreasuries, its average cost is $30,405, with a return rate of up to 288% and unrealized gains of $750 million.
This article states that Jack Dorsey's Block will join the S&P 500 index, with a monthly Bitcoin investment return rate of up to 288%, first appearing in Chain News ABMedia.
