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Jack Dorsey’s fortune drops by $526 million after shorting Hindenburg


(Bloomberg) — The net worth of Jack Dorsey, co-founder of Block Inc. dropped after Hindenburg Research’s latest report, which accused the payments company of ignoring widespread fraud.

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Dorsey’s fortune fell $526 million on Thursday, the worst one-day drop since May. He is now worth $4.4 billion after falling 11%, according to the Bloomberg Billionaires Index.

Hindenburg published a report on Thursday claiming that Block had inflated user metrics and that the stock had a 65% to 75% drop “on a purely fundamental basis.” The company has denied the allegations and said it plans to explore legal action against short sellers.

Block dropped as much as 22% on Thursday, before closing down 15%.

Dorsey, the co-founder of Twitter, has most of his personal fortune tied to Block. Bloomberg’s wealth index estimates his stake in the company at $3 billion, while his position in Elon Musk’s social media company is worth $388 million.

This isn’t the first time Hindenburg, run by Nathan Anderson, has singled out billionaires and caused their fortunes to drop.

The company announced an investigation into India’s Gautam Adani and his empire earlier this year, sending shares of his companies plummeting and taking tens of billions of dollars off his wealth. his net.

Adani, who was once the world’s second-richest person, is now 21st on Bloomberg’s wealth index with a fortune of $60.1 billion.

Hindenburg also targeted electric car maker Nikola Corp. in September 2020. Then Nikola’s stock plunged and an investigation led to a fraud conviction against founder Trevor Milton in October.

–With support from Jack Witzig.

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