Block stated in a statement that Hindenburg’s report was “factually false and deceptive” and “intended to mislead and confuse investors.” It stated that legal action against the short seller was being considered.
On track for their lowest finish since November, Block’s shares closed Wednesday’s regular session at $72.65, down more than 6%. By yesterday, the stock had gained more than 15% this year, but was down more than 70% from its all-time high in June 2021.
Block is best known for its white credit-card readers, which let companies to take payments with a smartphone or tablet. Nevertheless, the company’s Cash App peer-to-peer payment service has been a crucial growth engine in recent years.
Hindenburg stated that Cash App Founder Jack Dorsey earned a $5 billion personal wealth by exploiting Cash App consumers while “pretending to care profoundly” for them.
Hindenburg has previously attacked Nikola, an electric truck manufacturer whose founder was eventually convicted of securities fraud, and Adani Company, an Indian conglomerate.
Network Hype Team