Block';s Response to Inaccurate Short Seller Report

Rhea-AI Summary

Block, Inc. (NYSE: SQ) announced plans to collaborate with the SEC and consider legal action against Hindenburg Research for a misleading report regarding its Cash App business. The company asserts that this report is aimed at benefiting short sellers by manipulating stock prices. Block emphasizes its commitment to transparency and compliance, stating it regularly discloses relevant information to the public. The company's diverse offerings include Square, Cash App, Spiral, TIDAL, and TBD, which together aim to enhance access to financial services and empower various sectors within the economy.

Positive

• Block, Inc. plans to work with the SEC regarding the misleading report, showcasing its proactive stance against misinformation.
• The company is confident in its data and compliance, reinforcing trust among investors.

Negative

• The report by Hindenburg Research could temporarily impact investor sentiment despite Block's reassurances.

DISTRIBUTED-WORK-MODEL/SAN FRANCISCO--(BUSINESS WIRE)-- We intend to work with the SEC and explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today.

Hindenburg is known for these types of attacks, which are designed solely to allow short sellers to profit from a declined stock price. We have reviewed the full report in the context of our own data and believe it’s designed to deceive and confuse investors.

We are a highly regulated public company with regular disclosures, and are confident in our products, reporting, compliance programs, and controls. We will not be distracted by typical short seller tactics.

About Block

Block, Inc. (NYSE: SQ) is a global technology company with a focus on financial services. Made up of Square, Cash App, Spiral, TIDAL, and TBD, we build tools to help more people access the economy. Square helps sellers run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services. With Cash App, anyone can easily send, spend, or invest their money in stocks or Bitcoin. Spiral builds and funds free, open-source Bitcoin projects. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans. TBD is building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230323005636/en/

Media Contact

press@block.xyz

Investor Relations Contact

ir@block.xyz

Source: Block, Inc.

FAQ

What is Block, Inc. doing about the Hindenburg Research report?

Block, Inc. intends to collaborate with the SEC and explore legal action against Hindenburg Research for its misleading report.

How does Block, Inc. view the report by Hindenburg Research?

Block believes the report is designed to deceive and confuse investors, negatively impacting stock performance.

What are the main services of Block, Inc. (SQ)?

Block, Inc. offers services including Square, Cash App, Spiral, TIDAL, and TBD, focusing on access to financial services.