FinTech firm Block, formerly known as Square, intends to raise $1.5 billion by issuing senior notes to qualified institutional investors.
The notes’ interest rates and maturity dates will be determined through negotiations with the initial buyers, according to the announcement. Moreover, eligible investors that can join this round constitute pension funds, banks, mutual funds, and high-net-worth individuals.
“Block intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of debt under its existing notes, potential acquisitions and strategic transactions, capital expenditures, investments, and working capital.”
Shortly after, the firm’s stock price surged over 4%, reaching $72.40 per share. Block was one of the first public companies to add Bitcoin to its balance sheet. It was co-founded by Jack Dorsey, who recently left Bluesky, a social media platform launched to rival X.
Dorsey is an open advocate and Bitcoin proponent. He recently stated that Blocks would allocate 10% of its Bitcoin-related gross profits to Bitcoin products following a successful Q1 earnings report.
block is DCA’ing bitcoin every month. here’s how your company can do it too: https://t.co/xabpCVZdn8
— jack (@jack) May 2, 2024
Similarly, Dorsey’s #startsmall initiative recently donated $21 million to OpenSats, a charity supporting Bitcoin and freedom tech. As reported, $15 million is going to the General Fund, $5 million to The Nostr Fund, and $1 million to the operations budget.
