Square, led by Dorsey, renames itself Block in a nod to blockchain – .

Square, led by Dorsey, renames itself Block in a nod to blockchain – .

Dec. 1 (Reuters) – Square Inc (SQ.N), the payments company run by Twitter Inc (TWTR.N) co-founder Jack Dorsey, announced on Wednesday that it was changing its name to Block Inc because it seeks to expand beyond its payment activity and into new technologies such as blockchain.

The San Francisco-based company said the name “Square” has become synonymous with its sales activity. The new name would distinguish the corporate entity from its activities, Square added, a strategy similar to the rebranding of Meta Platforms Inc (FB.O) last month.

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

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

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

The move comes days after Dorsey stepped down as chief executive of Twitter. Square Crypto from the digital payments giant, a team “dedicated to the advancement of Bitcoin”, will also change its name to Spiral.

Under Dorsey, who has frequently expressed interest in cryptocurrency, Square bought $ 50 million worth of bitcoin even before the wave of institutional interest that has propelled the price of digital currency to record highs this year. In February, he increased his bet again and invested an additional $ 170 million in it.

Square has also considered creating a hardware wallet for Bitcoin to make its custody more common.

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

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Report by Niket Nishant in Bangalore; Editing by Krishna Chandra Eluri

Our Standards: Thomson Reuters Trust Principles.


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