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Block, Inc.

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Block, Inc.
Company typePublic
IndustryTechnology, Financial services
Founded2009; 17 years ago (2009)
FounderJack Dorsey, Jim McKelvey
Headquarters
St. Louis
,
United States
Area served
International (United States, Australia, Canada, France, Japan, Ireland, Spain, United Kingdom)
Key people
Jack Dorsey (Chairperson, Square Head)
ProductsSquare (point-of-sale platform), Cash App, Afterpay, Bitkey, Proto, Tidal
OwnerJack Dorsey (10% ownership stake)
Number of employees
Not specified
ParentNone
Websiteblock.xyz

Block, Inc. (previously known as Square, Inc.) is a U.S.-based technology and financial services firm established in 2009 by Jack Dorsey. It dominates the American market for point-of-sale solutions.[1] As of 2024, Block supports 57 million users alongside 4 million merchants,[2] handling $241 billion in payment transactions annually.[3]

The company's primary offering, Square, debuted in 2009 as a point-of-sale platform that enables merchants to accept card payments and oversee functions like appointment scheduling,[4] online sales,[5] stock management,[6] payroll processing,[7] banking services, and business financing.[8] Additionally, Block's assets include Cash App, a consumer-focused digital wallet launched in 2013,[9] which supports money transfers, savings accounts, borrowing options, debit card usage, stock and bitcoin investments,[10][11] as well as tax preparation.[12]

Block also owns Afterpay, a buy now, pay later service;[13] Bitkey, a bitcoin wallet with self-custody features;[14][15] Proto, a bitcoin mining operation;[16][17] and Tidal, a platform for music streaming.[18]

The company is publicly listed with Jack Dorsey retaining a 10% ownership stake.[19] Its business strategy combines financial services with technological products across international markets, catering to millions of consumers and vendors.

2009: Formation

The inception of Block’s key product, "Square," occurred in 2009 when co-founder Jack Dorsey witnessed his friend Jim McKelvey unable to finalize a $2,000 transaction due to the absence of credit card acceptance. Dorsey, also known for co-founding Twitter, collaborated with McKelvey to establish the company from a modest office in St. Louis. The brand "Square" derives its name from the distinctive shape of its card reader device.

2010–2014: Foundational phase

By mid-2010, Square had piloted its payment solution with 50,000 merchants while maintaining a chargeback ratio below 0.05%. In February 2011, Square’s valuation reached approximately $240 million as it onboarded around 100,000 new merchants each month. Visa’s investment in April 2011 demonstrated strong confidence in Square’s model. By October that year, Square was processing nearly $2 billion annually through its card readers, applying a transaction fee of 2.75%.

In 2012, Starbucks formed a partnership and invested in Square to integrate its payment technology, resulting in an annual transaction volume close to $6 billion. The following year saw the introduction of Cash App by Square, expanding into peer-to-peer payment services. By October 2014, Square had incorporated payroll solutions into its platform alongside merchant cash advances, customer feedback mechanisms, and invoicing tools—reflecting deliberate expansion of its product suite.

2015–2020: Public listing and expansion

In 2015, Square facilitated payment volumes totaling roughly US$23.8 billion for the previous year. That same year marked the company’s initial public offering (IPO), with shares priced at US$9 each and a market valuation of $2.9 billion. By December 2017, Cash App had attracted over 7 million active users and ranked as the leading free finance application on Apple’s U.S. iPhone App Store, outperforming rivals such as PayPal and Venmo.

In October 2020, Square allocated approximately 1% of its assets ($50 million) into Bitcoin investments, recognizing its promise as a global currency. The firm further expanded its cryptocurrency portfolio in February 2021 by acquiring about 3,318 bitcoins for $170 million, increasing total holdings to around 8,027 bitcoins—valued near $500 million in 2021 and approximately $481 million by mid-2024.

2021–2022: Rebranding and Strategic Acquisitions

On March 2, 2021, Square secured a controlling interest in Tidal through a $297 million transaction involving cash and stock; Jay-Z joined the board while maintaining his ownership stake alongside other artist investors.

Later that year, on December 10, 2021, Square underwent a rebranding to become Block, Inc., shortly after CEO Jack Dorsey stepped down from Twitter. This name change was intended to signify the company’s diversification beyond its original payment services. Shortly thereafter, H&R Block initiated a trademark infringement lawsuit citing potential brand confusion; this matter was resolved amicably by April 2023.

Furthering its expansion efforts, Block finalized the purchase of Australian buy now, pay later provider Afterpay on January 31, 2022, enhancing its presence in the BNPL sector and broadening its international reach.

2023–present: Organizational Shifts and Market Recognition

In February 2023, Afterpay encountered a technical issue that reduced spending limits for over 2,000 users. The company acknowledged the disruption and promptly addressed it. By September 2023, outages affected Square and Cash App services, disrupting card transactions and peer-to-peer payments. Block identified the root cause as a DNS failure rather than a cyberattack and restored services within 24 hours. In response, the company upgraded its firewall and DNS infrastructure, expanded offline payment capabilities for merchants, and introduced additional measures to mitigate future interruptions. Later that month, Block announced CEO Alyssa Henry’s exit from Square; Jack Dorsey assumed the newly created role of "Square Head" while continuing as Chairperson.

Reporting financials in February 2024, Block disclosed a Gross Payment Volume of $228 billion alongside an annual profit of $9.8 million for the previous year. By April, Block had developed an in-house three-nanometer bitcoin mining chip and partnered with a semiconductor foundry to produce a complete bitcoin mining system aimed at decentralizing hardware supply chains and hashrate distribution—addressing major industry challenges. In May 2024, Block’s Square platform was recognized as the leading point-of-sale system provider in the U.S. July saw Block enter into a major agreement to supply its mining chips to bitcoin miner Core Scientific; financial details were not made public.

September 2024 brought leadership changes at Block, promoting veteran executives to senior positions and establishing a new role focused on customer safety. Brian Grassadonia, former CEO of Cash App, was appointed "ecosystem lead" to enhance collaboration across Block’s divisions.

In October 2024, Block’s Bitkey received recognition as one of TIME magazine’s "Best Inventions of 2024." However, by November, the company announced workforce reductions affecting Tidal, TBD, and Square teams while winding down TBD operations and scaling back investments in Tidal to concentrate resources on bitcoin mining and Bitkey projects. This strategic realignment was driven by performance-based investment prioritization. In January 2025, Block updated its stock ticker symbol from SQ to XYZ.

In March 2025, Block revealed plans for another restructuring involving a reduction of approximately 1,000 employees.

On July 23, 2025, Block achieved inclusion in the S&P 500 index, replacing Hess Corporation—a significant milestone underscoring its expanding market presence and financial strength.

Square

Square functions as a payment platform that allows businesses to process card transactions through smartphones, tablets, or computers used as point-of-sale (POS) devices. Established in 2009 by Jack Dorsey and Jim McKelvey, Square's offerings extend well beyond payment processing to include payroll services, employee scheduling, appointment management, inventory tracking, e-commerce capabilities, banking solutions, and business financing.

In 2022, a Protocol survey revealed that Square commanded a 35% portion of the U.S. small business POS market, underscoring its substantial presence in a highly segmented sector. By April 2023, the platform supported 4 million merchants spanning from small and medium enterprises to larger corporations. Square operates internationally across the United States, Australia, Canada, France, Japan, Ireland, Spain, and the United Kingdom, maintaining its leading position in the U.S. POS market.

The extensive range of Square’s products and services underpins its expansion and competitive strength within the payments landscape.

Cash App

Introduced in October 2013 under the name Square Cash, Cash App is a digital wallet designed for peer-to-peer money transfers, stock and bitcoin investing, and tax preparation. In March 2015, Square launched a business version enabling transactions via unique $cashtags with a processing fee of 1.5%. By 2023, Cash App had broadened its portfolio to encompass savings accounts, debit cards, direct deposit functionality, and various investment options.

In March 2023, Cash App unveiled a complimentary tax-filing service; however, it does not cover all tax scenarios nor provide live support. Later that year in October, the app introduced a borrowing feature permitting qualified users to access loans up to $200.

Cash App enjoys widespread popularity among lower-income adults in the U.S., boasting 57 million monthly active users as of 2024 and securing a prominent role in the digital payments sector.

Afterpay

Afterpay is an Australian-based digital payment service launched in 2014 by entrepreneur Nick Molnar alongside co-founder Anthony Eisen. It offers customers the ability to split purchases into four interest-free payments. Inspired by the financial challenges following the 2008 crisis and focusing on millennials, Afterpay rapidly expanded its footprint and achieved an estimated market value of $3.3 billion within four years. By February 2020, its active user base included 3.6 million customers in the U.S., 3.1 million across Australia and New Zealand, and 600,000 in the U.K.

By August 2021, Afterpay was available in multiple countries including the United States, Canada, New Zealand, the United Kingdom, France, Italy, and Spain under the Clearpay brand. That same month marked Block’s (formerly Square) announcement of acquiring Afterpay for $39 billion through a stock transaction valued at US$29 billion. The deal finalized in January 2022 with Molnar and Eisen retaining leadership roles over Afterpay’s merchant and consumer operations. In 2024, Molnar advanced to lead sales across Block's entire organization.

As of 2023 data shows Afterpay serves approximately 24 million users alongside 348,000 merchants worldwide and processes $27.3 billion annually in transactions. It stands as one of the top three global providers in the buy-now-pay-later (BNPL) market segment, highlighting its considerable influence within fintech.

Bitkey

In December 2023, Block introduced Bitkey, a Bitcoin hardware wallet designed for self-custody, accessible in 95 countries including the U.S., U.K., Canada, Nigeria, Argentina, Mexico, and India. Bitkey empowers users to securely hold and manage their Bitcoin without relying on third-party custodians. The solution comprises a mobile application, a physical hardware device, and recovery options to safeguard assets in case of device loss. Importantly, Bitkey has no capability to access or transfer customers’ Bitcoin independently. In October 2024, TIME honored Bitkey as one of the "best inventions of 2024," recognizing its advancement in cryptocurrency security.

Proto

Proto, launched by Block in April 2024, is a bitcoin mining system aimed at decentralizing the supply of mining hardware and distributing hashrate more broadly. The company engineered its proprietary three-nanometer bitcoin mining chip and collaborated with a semiconductor foundry for manufacturing. By July 2024, Block finalized a supply contract with Core Scientific, a leading bitcoin miner. Production was underway by February 2025, with plans to deploy the mining system later that year. Proto is projected to play a key role in driving Block’s business expansion during the latter half of 2025.

Tidal

Tidal is a subscription-based high-definition music streaming platform offering over 100 million tracks. Initially launched by Norwegian firm Aspiro in 2014, it was acquired by Jay-Z in 2015 for $56 million to give artists greater control over music distribution. At that time, Tidal operated across major markets such as the U.S., Canada, U.K., and parts of Europe. In 2021, Block purchased a majority stake for $297 million to strengthen tools supporting musicians’ businesses and explore innovative revenue streams. While competing against industry giants like Spotify, Tidal distinguished itself by providing higher royalty payments to artists. However, its "Direct Artist Payouts" initiative concluded in 2022, diminishing this competitive edge. In November 2024, Block announced a strategic reduction in investment toward Tidal amid workforce reductions and the elimination of product management and marketing roles, redirecting focus solely on core product development within a leaner operational framework.

Weebly

Weebly is a website hosting platform that allows users to build and manage websites through an intuitive drag-and-drop interface. It features customizable templates and e-commerce capabilities designed primarily for small businesses and personal websites. Founded in 2006 by David Rusenko, Chris Fanini, and Dan Veltri, Weebly’s mission was to simplify website creation for users without technical expertise.

In 2018, Square (now Block, Inc.) acquired Weebly for $365 million, integrating it with Square’s payment processing and commerce ecosystem. At the time of acquisition, Weebly served over 625,000 paying subscribers and hosted more than 40 million websites. Despite facing competition from Wix and Squarespace, Weebly maintained a significant market presence due to its user-friendly design and competitive pricing.

By 2021, Block announced plans to consolidate Weebly with its Square Online platform, retiring the Weebly brand to unify its e-commerce services. The migration of existing Weebly customers to Square Online was completed by 2023 while preserving essential functionalities. Industry analysts observed that this rebranding streamlined Block’s product lineup but led to some dissatisfaction among longtime Weebly users.

Financials

Block attracted angel investments from prominent entrepreneurs such as Marissa Mayer, Kevin Rose, Biz Stone, Dennis Crowley, Shawn Fanning, MC Hammer, and Esther Dyson. The company subsequently completed several funding rounds:

  • Series A led by Khosla Ventures
  • Series B backed by Sequoia Capital
  • Series C funded by Kleiner Perkins
  • Series D involving Citi Ventures, Rizvi Traverse Management, and Starbucks
  • Series E supported by Goldman Sachs, Rizvi Traverse Management, and GIC Private Limited

By October 2014, Block's valuation had climbed to $6 billion. However, during its initial public offering on November 19, 2015, at the New York Stock Exchange, the company's value was assessed at $2.9 billion—reflecting the differing rights between Series E shares and common stock. Although unprofitable through 2015 with cumulative losses of $420 million since 2012, Block successfully lowered its loss-to-revenue ratio from 44% to 16% in the half-year preceding the IPO.

For the fiscal year 2018, the company reported revenues of $3.299 billion alongside a net loss of $38 million—a 49% revenue increase compared to the previous year. By 2024, Block had achieved revenues totaling $24.12 billion, operating income of $892 million, net income of $2.9 billion, and processed a gross payment volume (GPV) of $240.81 billion. At year-end, the organization employed 11,372 individuals and recorded total assets of $36.78 billion with stockholders' equity amounting to $21.27 billion.

Year Revenue
in mil. US$ 		Net income
in mil. US$ 		Total assets
in mil. US$ 		Employees
2012 203 −85 0
2013 552 −104 318
2014 850 −154 542 1,282
2015 1,267 −212 895 1,449
2016 1,709 −172 1,211 1,853
2017 2,214 −63 2,187 2,338
2018 3,299 −38 3,281 3,349
2019 4,714 375 4,551 3,835
2020 9,498 213 9,870 5,477
2021 17,661 166 13,925 8,521
2022 17,532 −541 31,364 12,428
2023 21,916 9.77 34,069 12,985
2024 24,121 2,897 36,777 11,372

Operations

Block was co-founded by Twitter’s founder and CEO Jack Dorsey and operates its primary payment system Square from its San Francisco headquarters. Amrita Ahuja holds the position of Chief Financial Officer. The company employs more than 5,000 personnel.[20][21][22]

Square initially launched within the United States in 2010 and expanded into Canada by late 2012. In response to the COVID-19 crisis in 2020, Square implemented remote work policies and later permitted certain employees to work remotely on a permanent basis. By the following year (2021), Block maintained its physical office locations but did not designate a single official headquarters.[23]

Financing and acquisitions

Victory Park Capital made investments in Square Capital starting in 2014 and significantly increased funding by the following year to support small business lending; by 2016 Square had extended loans exceeding $1 billion through this initiative. The company went public with an IPO on November 19, 2015.[24][25][26]

Block has strategically expanded its portfolio through acquisitions: In 2018 it acquired Zesty (a corporate food delivery service) and Weebly (a website creation platform) for a combined $365 million. In 2019 it purchased AI startup Eloquent Labs to improve customer service capabilities. During 2020 acquisitions included Toronto-based deep learning company Dessa and Credit Karma Tax for $50 million—integrating tax preparation functionality into Cash App.[27][28][29][30][31]

In March 2021 Block obtained a controlling interest in music streaming platform Tidal for $293 million as part of broadening its digital ecosystem. That quarter experienced a remarkable sales increase of 266%, driven by economic recovery and higher bitcoin-related revenue.[32][33] Later that year in August 2021 Block announced its intention to acquire Afterpay—a leading "buy now, pay later" provider—in a stock transaction valued at $29 billion; this deal was completed in January 2022.[34]

Accusations of Unlawful Conduct

On March 23, 2023, the investment research firm Hindenburg Research announced a short position targeting Block, which led to a 15% decline in the company's stock price. Hindenburg alleged that Block exaggerated its user base, failed to adequately prevent fraudulent activities on Cash App, and permitted impersonation of well-known individuals. The report asserted that Block "endorsed exploitative products and poor compliance practices to drive growth and profit from enabling fraud."

In response, Block declared its intention to cooperate fully with the SEC while also considering legal measures against Hindenburg for producing a report it described as "factually incorrect and deceptive."

By May 2024, NBC News revealed that prosecutors within the Southern District of New York were examining Block’s financial dealings and compliance shortcomings related to its Square and Cash App divisions. The investigation focused on allegations including insufficient collection of customer data, processing transactions associated with sanctioned nations, and cryptocurrency operations connected to terrorist organizations.

In November 2024, Block announced that it was engaged in ongoing discussions to reach settlements with several state regulatory bodies concerning its anti-money laundering controls. Additionally, negotiations were underway with the Consumer Financial Protection Bureau (CFPB) about Cash App’s management of consumer complaints. While the company recognized liabilities related to these matters, it emphasized that the financial impact was not significant as of September 30, 2024.

See also

Notes


External links

  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :2
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :23
  3. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named 8K_2024Q4
  4. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :16
  5. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :25
  6. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :28
  7. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :6
  8. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :7
  9. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :24
  10. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :10
  11. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :11
  12. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :12
  13. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :14
  14. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :18
  15. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :19
  16. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :41
  17. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :43
  18. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :17
  19. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named Bloomberg Billionaires Index
  20. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named aboutsquare
  21. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named californiahomedesign1
  22. ↑ Bloomberg
  23. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named 10K2021
  24. ↑ Victory Park Capital
  25. ↑ Square press release
  26. ↑ IPO news
  27. ↑ Zesty acquisition
  28. ↑ Weebly acquisition
  29. ↑ Eloquent Labs
  30. ↑ Dessa acquisition
  31. ↑ Credit Karma Tax
  32. ↑ Tidal acquisition
  33. ↑ Q1 sales surge
  34. ↑ Afterpay acquisition
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