Business

Dorsey-led Square rebrands for Block in nod to blockchain




December 1 (Reuters) – Square Inc (SQ.N), the payment company led by Twitter Inc (TWTR.N) co-founder Jack Dorsey, said on Wednesday that it is changing its name to Block Inc, as it appears to be expanding beyond its payment business and into new technologies such as blockchain.

The San Francisco-based company said the name “Square”[ads1]; had become synonymous with its sales operations. The new name will separate the business unit from the business, added Square, a strategy similar to the Meta Platforms Incs (FB.O) rebrand last month.

The company said there would be no organizational changes and its various business units – Square, peer-to-peer payment service Cash App, music streaming service Tidal and its bitcoin-focused financial services segment TBD54566975 – will continue to maintain their respective brands. Shares rose almost 1% in expanded trading.

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“The name has many associated meanings for the company – building blocks, neighborhood blocks and their local businesses, communities that gather at block parties full of music, a blockchain, a code section and obstacles that must be overcome,” Square said in a statement.

Jack Dorsey, co-founder of Twitter and fintech firm Square, poses for a portrait during an interview with Reuters in London, UK, June 11, 2019. REUTERS / Toby Melville

The move comes days after Dorsey resigned from her role as CEO of Twitter. The digital payment giant Square Crypto, a team “dedicated to promoting Bitcoin”, will also change its name to Spiral.

Under Dorsey, who has often expressed interest in the cryptocurrency, Square bought bitcoin for $ 50 million even before the wave of institutional interest that drove the price of the digital currency to record highs this year. In February, it increased its efforts further and invested an additional $ 170 million in it.

Square has also considered creating a bitcoin hardware wallet to make custody more mainstream.

The new name will take effect on or around December 10, Square said, but the “SQ” ticker symbol on the New York Stock Exchange will not change at this time.

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Reporting by Niket Nishant in Bengaluru; Editing Krishna Chandra Eluri

Our standards: Thomson Reuters Trust Principles.



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