Hindenburg Research’s latest report alleging widespread fraud has taken a toll on the net worth of Jack Dorsey, co-founder of Block Inc. On Thursday, his fortune plummeted by $526 million, resulting in his worst single-day decline since May. According to the Bloomberg Billionaires Index, he is now worth $4.4 billion after the 11% drop. Hindenburg claimed that Block had inflated user metrics, estimating that the stock has a downside of 65% to 75% “on a purely fundamental basis.”
Although the company denied the allegations and announced plans to explore legal action against the short-seller, Block fell as much as 22% before ending down 15% on Thursday. Dorsey has most of his personal fortune tied up in Block, and the Bloomberg wealth index estimates his stake in the firm at $3 billion, while his position in Elon Musk’s social media company is valued at $388 million.
Hindenburg’s actions are not new, as the research firm has previously targeted billionaires and caused their fortunes to plummet, including Gautam Adani and his empire earlier this year and electric carmaker Nikola Corp. in September 2020.
