Square Shares Drop 6% on Rebranding to ‘Block’

The latest rebrand to Block has sparked discussions about the company’s deeper foray into the crypto industry and has unsettled investors.

Square becomes ‘Block’

Shares of payment company Square have fallen since its rebrand to Block. Shortly before the news was announced, the share price was at USD 207.36. However, it is now trading at $192.15, which is 6.3%.

The name change, along with the fact that the payment company is likely to take an extra step into the crypto world, seems to have deterred investors.

Of course, the connection with crypto does not come out of the blue. The name change to ‘Block’ seems to allude to the term blockchain. This is the technology that underpins most of the industry. Jack Dorsey, formerly CEO of Square and now CEO of Block, wrote:

“The name has many associated meanings for the company. Building blocks, neighborhood blocks and their local businesses, communities coming together, a blockchain, a ‘block’ code and obstacles to overcome”.

Block and Bitcoin

In addition to blockchain technology, Dorsey is also an outspoken supporter of Bitcoin. He has put this advocacy to work at the company through several initiatives. For example, the company has plans to build a decentralized exchange (DEX). It also wants to develop Bitcoin mining machines.

And even before these efforts, the company’s Cash app has been letting users buy and sell Bitcoin for some time now. The service also rakes in a pretty penny, earning Block $1.81 billion in revenue.

And now that Dorsey is stepping down from his position as CEO of Twitter, many have speculated that he will spend more time in the crypto world. The first reports gifts even stating that Dorsey had “spent less than 10% of his time on Twitter”.

While crypto enthusiasts are excited about the news, it seems that many SQ holders are much less excited about Block’s potential.

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