Jack Dorsey, the CEO of Twitter and Square, reportedly suffered a significant loss of $526 million in his net worth in a single day after a short seller, Hindenburg Research, published a report raising concerns about Square’s business practices. The report suggested that Square’s growth was not sustainable, and its business model heavily relied on inflated Bitcoin prices.
As a result, Square’s shares dropped over 6%, causing significant financial loss to Dorsey, who holds a considerable stake in the company. In addition, Dorsey is also a significant shareholder in Twitter, where he is the CEO.
Despite the setback, Dorsey has been a vocal advocate of cryptocurrency and has often spoken about the potential of Bitcoin to transform the financial system. However, Hindenburg’s report raised concerns about Square’s reliance on Bitcoin and criticized its acquisition of the Australian financial services firm Afterpay, stating that the deal was overpriced and that Square’s management had failed to disclose key information about the acquisition.
Despite the allegations, Dorsey has remained optimistic about the future of Square and has emphasized that the company’s mission to empower small businesses remains unchanged. He has also welcomed the scrutiny, stating that he believes it will ultimately strengthen the company’s position.
In conclusion, Jack Dorsey’s net worth suffered a significant loss due to Hindenburg’s report, which raised concerns about Square’s business practices. Despite this setback, Dorsey has remained optimistic about the company’s future and is committed to its mission to empower small businesses.
