Dorsey’s Block Shares Closed Down By 8% In 52-Week Low

Jack Dorsey’s Block shares closed down by more than 8% and marked a 52-week low on Wednesday as we can see today in our latest blockchain news.

The digital payments company is formerly known as Square, now popular and known as Jack Dorsey’s Block, saw a drop in stocks as a part of the recent sell-off in growth names and risky assets because of the concerns of the FED rate hikes. Since changing the corporate name on December 1 last year to align with the focus on blockchain, the company was down by 26%.

On the day Square announced its name change to Block, BTC was trading near $57,000 but a month later, the crypto started dropping and it is 19% below the level nearing $41,000 as of Wednesday. A month after changing its name Block’s stocks dropped from $194 per share to $144. The CEO Jack Dorsey, who is an avid proponent of crypto often tweets about BTC and he planned to change the name from Square to Block. Dorsey stepped down as CEO of Twitter to boost the efforts in Block and he said during the earnings call in November 2021:

“Our focus is on helping bitcoin to become the native currency for the internet.”

The reports show that Blck was sued by tax preparation company H&R Block Inc for a trademark infringement and the company said that the fintech company would improperly capitalize on the goodwill of consumers trust cultivated by Block since 1955.

As we discussed previously, Dorsey resigned from Twitter to focus more on his other company, the financial payments company Square but many wondered what it would mean for both businesses and the crypto ambitions he has. Dorsey subtweeted some kind of an answer as it announced that Square renames to block referencing blockchain, the technology behind Bitcoin. Not that the company is stating that but Block says it “creates room for further growth.”

Square has been experimenting with plenty of crypto-based ideas like the one we saw in November when it released a white paper for a decentralized exchange for trading Bitcoin and other assets. Dorsey also said that the company is looking into building Bitcoin mining machines that will go hand in hand with the hardware wallet that is already under development. Selling bitcoin has also been a huge earner for Square Cash App for many years while in its recent quarter it registered $1.81 billion in revenue and netted $42 million in profit.