Tech investors are still digesting the departure of Jack Dorsey from Twitter (NYSE:TWTR). After 15 years with the company, it will be the first time ever the platform operates without Dorsey at the helm. He’s not stepping away from executive duties as a whole yet, though; he’s still piloting his fintech company Square (NYSE:SQ). Now, with Square rebranding as Block, SQ stock investors know exactly where Dorsey’s mind is regarding the future.
The company has remained on the cutting edge of finance tech ever since it launched its flagship application Cash App, which allows for the seamless transaction of money between users. However, things are about to go a step further; it is becoming very apparent that Dorsey wants to make digital currency a priority.
Here’s what investors should know about the rebrand and what it suggests.
SQ Stock Transforms From Fintech Giant to Crypto Power Play Following Rebrand
- Dorsey has only just stepped down from his position as CEO of Twitter. The news broke on Monday morning, followed immediately by the announcement of Parag Agrawal as the new CEO.
- However, he did not step down as CEO of Square, his other company.
- This is leading to a general sense of bullishness among investors in SQ stock. Much criticism that Dorsey has faced over the years regard his time-splitting between Twitter and Square. Those like billionaire investor Paul Singer say Dorsey’s lack of full commitment to either of the companies is a detriment to both.
- Now, with Dorsey out of Twitter, one can be sure Square will be seeing lots of extra attention, hopefully catalyzing some big gains.
- Today, just three days after his Twitter resignation, Square is already seeing massive changes. Following in the footsteps of Meta Platforms (NASDAQ:FB), the company is undergoing a rebrand from Square to Block.
- The name change says an awful lot without saying anything at all. The name is obviously an homage to Dorsey’s fascination with blockchain technology and cryptocurrency.
- For a while, Square had been a fiat-first company. It made some changes to its platforms, like allowing Bitcoin (CCC:BTC-USD) transactions through Cash App. But now, it looks like it will be focusing much more on crypto.
- The company already has many plans in the books going forward. Two projects of note include a decentralized exchange for buying Bitcoin, as well as a crypto hardware wallet. This rebrand is a signifier that these projects are less of a side effort and more of a sea-change for the company.
- Of course, this morning, SQ stock saw quite a bit of volatility. The vote on the company’s merger with Australian fintech company Afterpay was supposed to take place early next week. But, the circumstances have changed, and the merger vote is being delayed. This is presenting investors with a buying opportunity as it makes this defining pivot.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.