Block Inc, the technology conglomerate led by Jack Dorsey and involved in numerous sectors of the digital asset landscape, is slated to join the S&P 500 on Wednesday, July 23. The announcement late Friday led to a 10% surge in the stock in after-hours trading.
“Joining the S&P 500 signifies a pivotal moment that underscores our business’s robustness and the dedication of thousands who are crafting tools to broaden economic accessibility across our affiliates including Square, Cash App, Afterpay, TIDAL, Proto, and Bitkey,” noted the company in a press release. “We are grateful to our customers, teams, and shareholders who have accompanied us throughout this journey. We’re only just beginning.”
Established in 2009 as Square, Block Inc (ticker XYZ) initially concentrated on financial services and mobile payment solutions. It underwent a rebranding process in December 2021 to reflect its mounting interest and engagement in blockchain and digital assets.
Block’s Bitkey branch offers a straightforward self-custody wallet for Bitcoin, and Proto provides a range of Bitcoin mining products and services. Block’s inclusion in the S&P 500 occurs approximately two months after Coinbase, the first exclusive crypto company, joined the benchmark index, supplanting Hess to be acquired by Chevron.
Starting last summer, Block has been allocating 10% of its Bitcoin earnings to BTC monthly and has made its treasury blueprint public so others can emulate. The company owns 8,584 BTC, equivalent to roughly $1 billion at the present value.
In November, Block announced it would scale back investments in the music streaming app Tidal and discontinue the decentralized web platform development team at TBD. Block recently settled a $40 million case with New York’s chief financial regulator over AML violations. The stock currently trades at approximately $72.82 per share, with a market capitalization of roughly $44.8 billion, based on The Block’s XYZ price data.
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