Twitter founder Jack Dorsey's payment platform Block (formerly known as Square) is set 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. Having started purchasing Bitcoin in 2020, according to Bitcointreasuries data, its average cost is $30,405, yielding a return of up to 288%, with unrealized gains reaching $750 million.
Block is officially included in the S&P 500 Index
According to the 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 7/23, after the latter was officially acquired by Chevron on 7/18. Block's stock price surged by 14% in after-hours trading, reporting at $79.1 before publication.
Inclusion in the U.S. stock index benchmark can enhance a company's image, and as passive investment funds grow, being included in the component stocks can 'automatically permeate into all portfolios,' which includes traditional 401k plans, retirement funds, and a wide range of investors engaging in passive investing, giving stock prices more opportunities to rise.
Image source: TradingView
Block expands from payments to fintech company
Block has evolved from a payment processor to a broader fintech company, offering 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 begin offering consumer loans directly through the Cash App Borrow product.
The company has also integrated Bitcoin payment functionality into its Square platform, reflecting Dorsey's long-standing advocacy for Bitcoin. He remains a significant figure in the digital asset space and recently shared an open-source programming project on X.
Despite the company struggling with uneven profit results, Block remains committed to transforming Cash App into a comprehensive banking and loan product.
Monthly investment in Bitcoin yields a return of up to 288%
Starting in April 2024, Block will allocate 10% of the gross profit from its Bitcoin products each month to purchase Bitcoin. Block currently holds 8,584 Bitcoins, ranking eleventh among publicly traded companies. Having started purchasing Bitcoin in 2020, according to Bitcointreasuries data, its average cost is $30,405, yielding a return of up to 288%, with unrealized gains reaching $750 million.
This article is reprinted with permission from: (Chain News)
Original title: (Jack Dorsey's Block to join the S&P 500 Index, monthly investment in Bitcoin yields a return of up to 288%)
Original author: Florence
'Twitter founder Block company to join S&P! Monthly investment in Bitcoin, return of 288%' was first published in 'Crypto City'
