Jack Dorsey Loses $526 Million After the Hindenburg’s Report
In a report published on Thursday, Hindenburg claimed that Block had exaggerated its user metrics and that the stock’s downside ranged from 65-70%.
Bloc Inc. After Hindenburg Research‘s most recent report, which claimed the payments company ignored widespread fraud, co-founder Jack Dorsey’s net worth took a hit.
Thursday marked Dorsey’s worst single-day loss since May as his fortune fell by $526 million. Following the 11 percent decline, the Bloomberg Billionaires Index estimates that he is now worth $4.4 billion.
In a report published on Thursday, Hindenburg claimed that Block had inflated its user metrics and that the stock’s downside was between 65 and 75 percent “on a purely fundamental basis.”.
The business refuted the accusations and declared that it would consider taking legal action against the short-seller.
Before declining 15% to end the day, the block fell as much as 22% on Thursday.
The majority of Dorsey’s personal fortune is invested in Block; he also co-founded Twitter. His ownership in the business is estimated to be worth $3 billion by the Bloomberg wealth index, compared to $388 million for his stake in Elon Musk’s social media startup.
The Nathan Anderson-run Hindenburg has targeted billionaires before and reduced their wealth to nothing.
The company published an investigation into Gautam Adani and his empire earlier this year, which caused the stocks of his companies to fall and erased tens of billions of dollars from his net worth.
Adani, who was once the second-richest person in the world, is currently ranked 21st on Bloomberg’s wealth index with a $60.1 billion fortune.
Nikola Corp., a manufacturer of electric vehicles, was also a target for Hindenburg. 2020 September.
Following this, Nikola’s stock fell, and an investigation resulted in Trevor Milton, the company’s founder, being found guilty of fraud in October.