Block Inc SQ CEO Jack Dorsey’s wealth eroded by $526 million on Thursday after short-seller Hindenburg Research published a bearish report on the company.
What Happened: Dorsey is worth $4.4 billion after taking an 11% hit on his net worth, reported Bloomberg, citing data from the “Billionaire’s Index” maintained by it.
The index estimated that Dorsey’s stake in Block is worth $3 billion, while his position in the Elon Musk-owned Twitter is $388 million.
On Thursday, Block shares fell by nearly 15% after Hindenburg said that Block was taking advantage of people it claims to be helping by disguising its “predatory” loans as a revolutionary technology.
Why It Matters: A previous disclosure by Hindenburg on India’s Adani Group led to billionaire Gautam Adani falling out of the 10 Wealthiest List.
The report, released in January, also led to the culling of a planned $2.5 billion share sale of Adani’s flagship company Adani Enterprises.
Block has hit back at Hindenburg calling the report from the short seller “misleading” and “factually inaccurate.”
The Dorsey-led company said it was “highly regulated” and made regular public disclosures as a public company.
Price Action: On Thursday, Block shares closed 14.8% lower at $61.89 in the regular session and declined another 0.6% in the after-hours trading, according to data from Benzinga Pro.
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