Mere days after stepping down as CEO of Twitter, Jack Dorsey is making big changes at Square with possibly big implications for investors.
Dec. 2, 2021
Mere days after leaving his first family for a monogamous relationship with his Square (NYSE: SQ) family, former Twitter (NYSE: TWTR) CEO Jack Dorsey has decided it’s time for a change.
That change is renaming Square as ‘Block’ from December 10th.
But does this rebrand matter to investors?
For many investors, probably not.
But, if you’ll indulge my early morning, caffeine-induced ramblings, perhaps I can delve into some potential implications of the change.
So, as we know, Dorsey’s exit from Twitter leaves him free to be the 100% focused CEO of Square — soon to be Block. With that comes the full focus and bearded glory of a man whose Twitter bio contains just one word: “#bitcoin “. Given Square’s significant crypto holdings and the launch of cryptocurrency tool Square Crypto — soon to be rebranded as Spiral — it looks like the company’s future focus may lie in digital currency.
Now, I’m not saying that when it becomes Block in eight days that the company will suddenly pivot. It is retaining the Square product in its current form, which is also its biggest moneymaker. Square will simply be to Block what Google is to Alphabet — a (significant) cog in a growing wheel.
But there’s no ignoring the elephant in the room; this Block rebranding is likely to coincide with a renewed push into crypto products. In a company statement, the company even name-dropped “blockchain” as inspiration for the rebranding, albeit alongside several other reasons such as “building blocks” and “neighborhood blocks”.
At the end of the day, if you’re a Square investor, you’re probably ok with exposure to the world of crypto. However, if it’s just not your thing, you might want to consider your position as Dorsey is about to take this biz to a whole new level.