Jack Dorsey’s wealth tumbles $526 million after Hindenburg short: The recent report by Hindenburg Research accusing Block Inc. of ignoring widespread fraud has had a significant impact on co-founder Jack Dorsey’s net worth. His fortune dropped 11% in a single day, totaling $526 million, the most significant single-day drop since May. According to the Bloomberg Billionaires Index, Dorsey’s net worth now stands at $4.4 billion.
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Hindenburg report and Jack Dorsey’s Wealth:
Hindenburg published a report accusing Block of inflating user metrics and predicting a downside of 65% to 75% for the stock based on fundamentals alone. Although Block denied the allegations and intends to pursue legal action against the short-seller, the company’s shares dropped by as much as 22% before ultimately closing down 15%.
The majority of Jack Dorsey’s personal wealth is invested in Block, which he co-founded with Twitter. According to the Bloomberg wealth index, his stake in Block is valued at $3 billion, while his position in Elon Musk’s social media firm is estimated at $388 million.
History of Hindenburg Reports:
Hindenburg Research, headed by Nathan Anderson, has previously targeted billionaires and caused their wealth to plummet.
Earlier this year, the firm conducted an investigation into Indian businessman Gautam Adani and his companies, which resulted in their stocks plunging and causing Adani’s net worth to decrease by tens of billions of dollars. With a fortune of $60.1 billion, Adani, who was previously the world’s second-richest person, is now ranked 21st on Bloomberg’s wealth index.
In September 2020, Hindenburg also focused on electric carmaker Nikola Corp. The company’s stock price dropped following the report, and an investigation ultimately resulted in the conviction of founder Trevor Milton for fraud in October of that year.