Just hours after Hindenburg Research released its next report on Jack Dorsey’s Block Inc, the billionaire’s wealth fell unexpectedly. According to Bloomberg Billionaires Index, Dorsey’s fortune tripped by $526 million on Thursday, making it the worst single-day decline since May.
As per last published report by Bloomberg, Jack Dorsey was worth $4.4 billion after the 11 percent drop that his wealth experienced due to Hindenburg’s allegations. Please note that the real time wealth of Jack Dorsey has not been updated in this story.
Hindenburg Research’s allegations on Jack Dorsey’s Block Inc come in the context of payments. The short seller has alleged that Block has allowed fraudulent accounts to proliferate on cash applications, generating illegitimate revenue and exaggerating user metrics.
Before launching a barrage of allegations, Hindenburg dropped hints that it was releasing a new report, one that would be a ‘big’ one. While many speculated that the new Hindenburg report would again be in an Indian context, others were left in divided as to what was the short-seller up to.
Hindenburg Research, a firm, otherwise known for its forensic financial research, rose to fame after its report on the Gautam Adani-led Adani Group. The short-seller accused Adani of fraud and stock manipulation, a saga whose ripple effects had an impact on all of the market. During this time, Adani’s stocks also faced a massive sell-off, bringing out Gautam Adani’s wealth as well, just like Dorsey’s in Block Inc’s case.