Jack Dorsey's Block, With Over $1 Billion In Bitcoin Holdings, Set To Join S&P 500 — Shares Pop 8% In Overnight Trading

Block, Inc. (NYSE:XYZ) shares are soaring in overnight trading on Sunday ahead of the S&P 500 debut of the Jack Dorsey-founded fintech company.

What happened: Block was up 8.31% as of this writing on the Robinhood trading platform. 

The company's inclusion in the coveted S&P 500 index, seen as the barometer of the U.S. stock market, will become effective July 23, according to a press release shared Friday.

See Also: Tom Lee Says Michael Saylor-Led Strategy’s 35x Surge Wasn’t Just Bitcoin — Treasury Moves ‘Far More Significant’ Than Token Price Gain

Why It Matters: Block, formerly known as Square, was founded in 2009 and specializes in point-of-sale systems and payment solutions. It gradually expanded its portfolio, placing a special focus on cryptocurrencies, particularly Bitcoin (CRYPTO: BTC).

Today, its offerings include the ‘Bitcoin-only’ Cash App digital wallet service, the self-custody Bitcoin wallet Bitkey, the Bitcoin mining product suite Proto and the Bluetooth-powered messaging service Bitchat.

The firm announced a new strategy, effective April 2024, wherein it would allocate 10% of its monthly Bitcoin-related gross profit to purchase additional Bitcoins. It holds a total of 8,584 BTC, worth over $1 billion, as of this writing, according to Bitcoin Treasuries.

Price Action:  Shares of Block closed 2.95% higher at $72.82  during Friday’s regular trading session. The stock has risen 81% over the last month. According to data from Benzinga Pro. Year-to-date, the coin has lost over 14%.

The stock exhibited a very high growth score—a measure of the stock’s combined historical expansion in earnings and revenue across multiple periods. How does it compare with Coinbase Global Inc. COIN and other cryptocurrency-related stocks? Visit Benzinga Edge Stock Rankings and find out.

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