Block’s stock plunged on Thurs after an investment firm revealed a short position against the company and released a lengthy report accusing the company of facilitating crime.
Hindenburg Research, an activist short seller that has been behind bruising attacks on companies like Adani Group and Nikola, released the scathing report on Thursday morning. Block’s stock immediately plunged 19% before clawing some of those losses back a bit to land down about 12% by midday.The research-focused group levied a series of allegations against Block, which centered on mobile payment giant Cash App.
But Hindenburg argued that mentions of the app should not be something that Dorsey and Block celebrate because the artists in question are “not generally rapping about Cash App’s smooth user interface and robust software integration toolkit.” Last year, 22Gz was arrested and charged with attempted murder after three people were injured in a nightclub shooting.
A former employee estimated that between 60% to 70% of accounts they reviewed during a usual shift while working at the company would have more than a dozen linked accounts. Another former employee estimated about 70% fell into that category, while a third guessed it was around 40%.
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