Jack Dorsey's Block Inc. added to the S&P 500 Index

## Block Corporation has S&P 500 stocks

The financial technology company Block, led by Jack Dorsey, is set to join the S&P 500 index on July 23. The company's stock price rose by over 10% in after-hours trading.

Chevron's acquisition of energy production company Hess for $53 billion (approximately 7.9 trillion yen) will result in Hess being excluded from the S&P 500. Instead, Block will be included.

To be included in the S&P 500, a company must meet six key requirements: a market capitalization of at least $18 billion (approximately 2.7 trillion yen), a float of 10% or more, and profitability based on GAAP standards for the most recent quarter and the past four quarters.

Stocks of companies included in the S&P 500 are automatically purchased by passive funds, making it easier for their stock prices to rise.

Block Inc. is engaged in a wide range of businesses centered around financial solutions such as payments focused on Square, personal financial services through Cash App, and self-custody wallets for the cryptocurrency Bitcoin (BTC).

In addition, Mr. Dorsey is known as a Bitcoin supporter. Block has been purchasing Bitcoin as a financial asset since 2020. Every month, funds are invested using the dollar-cost averaging method.

According to BitcoinTreasuries.NET, it currently holds 8,584 BTC, ranking 11th among companies holding Bitcoin by amount. In April, it released an open-source tool for companies holding Bitcoin on their balance sheets.

Block Corporation announced its Q1 (January to March) financial results in May. Against the backdrop of gross profit growing only 9% year-on-year, the stock price had fallen by 20% at this time. The financial results for Q2 are scheduled to be announced after the regular trading ends on August 7.

planning to release US-made mining chips

Block Corporation is also engaged in Bitcoin mining operations, and last year it completed the development of its own Bitcoin mining chips.

During the earnings announcement in May, Mr. Dorsey reaffirmed his plan to release the new Bitcoin mining chip "Proto" in the second half of this year.

This is an effort to compete with major mining equipment manufacturers such as Bitmain and MicroBT, designed to cater to both corporate miners and individual miners.

Mr. Dorsey stated that this chip will be manufactured in the United States, and under the policies of the Trump administration, with the increasing risks of tariffs and overseas manufacturing, producing domestically and collaborating with a strong supply chain will become a strategic advantage.

The background is that mining equipment is mainly manufactured in China and Southeast Asia, so the supply chain can be affected by Trump's tariffs.

In response to this situation, the Bitcoin mining company Bitdeer plans to start manufacturing mining equipment in the United States in the latter half of this year.

Bitcoin (BTC) News and Price

Comparing Bitcoin Exchanges | Which one allows for comfortable and cost-effective trading?

a.t3-set { text-decoration: none !important; }