Jack Dorsey, the co-founder of Block Inc. and Twitter, has reportedly lost $526 million in net worth after a report by Hindenburg Research accused the payments company of ignoring significant fraud. Dorsey’s net worth currently stands at $4.4 billion, according to the Bloomberg Billionaires Index, after an 11 percent decline in his fortune.
Hindenburg Research published its report on Thursday, alleging that Block had exaggerated its user metrics and was vulnerable by 65-75 percent on a fundamental basis. The company has denied the accusations and is considering legal action against the short-seller. Following the report, Block’s shares dropped by as much as 22 percent before closing down 15 percent.
Dorsey has a majority of his personal wealth invested in Block, estimated to be worth $3 billion by the Bloomberg wealth index. His stake in Elon Musk’s social media startup, Twitter, is worth $388 million. The recent decline in his net worth is the largest single-day loss since May.
Despite the setback, Dorsey remains a prominent figure in the tech industry and is known for his contributions to the development of social media platforms. The recent events surrounding Block are a reminder of the potential risks and uncertainties of investing in the tech sector, which is known for its volatility.
In conclusion, the recent decline in Jack Dorsey’s net worth following the Hindenburg report on Block underscores the importance of due diligence and risk management in investing. As the tech industry continues to evolve and face new challenges, investors must remain vigilant and informed to make sound investment decisions.
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