Jack Dorsey’s wealth tumbles $526 million after Hindenburg short

Petrochemical stock surges

Jack Dorsey, a co-founder of Block Inc., saw his net worth plummet as a result of the most recent analysis by Hindenburg Research, which said the payments company ignored significant fraud.
The largest single-day loss in Dorsey’s fortune since May occurred on Thursday, when it fell by $526 million. After an 11% decline, his current net worth is $4.4 billion, according to the Bloomberg Billionaires Index.
In a research published on Thursday, Hindenburg said that Block had exaggerated its user metrics and that the company was vulnerable by 65% to 75% “on a purely fundamental basis.” The business refuted the accusations and declared that it would consider taking legal action against the short-seller.

On Thursday, Block dropped as high as 22% before finishing down 15%.
The majority of Dorsey’s personal wealth is invested in Block, which he co-founded along with Twitter. His interest in the company is estimated to be worth $3 billion by the Bloomberg wealth index, while his stake in Elon Musk’s social media startup is worth $388 million.

It’s not the first time Nathan Anderson’s company, Hindenburg, has targeted millionaires and reduced their wealth.

Earlier this year, the company published an investigation into Indian businessman Gautam Adani and his empire, which sent his firms’ stocks tumbling and destroyed tens of billions of dollars’ worth of his wealth.

With a $60.1 billion fortune, Adani, who was formerly the second-richest person in the world, is currently ranked 21st on Bloomberg’s wealth index.

In September 2020, Hindenburg will also attack Nikola Corp., a manufacturer of electric vehicles. Following this, Nikola’s stock fell, and an investigation resulted in Trevor Milton, the company’s founder, being found guilty of fraud in October.

Source: TOI