As some suspected, outgoing Twitter chief executive Jack Dorsey shaking things up at his other company, Square inc (NYSE:SQ), which will now be relaunched with crypto vigour under the new name of ‘Block’.
Square is retaining its merchant point-of-sale payments business, which is used widely across SMEs, though that company will be just one piece of a group with a definite strategy focussed on blockchain, decentralised finance and cryptocurrency.
Block will also comprise CashApp (a personal payments, banking and investing app used widely among American bitcoin buyers along with the Tidal media streaming platform which is exploring the use of NFTs, and a new business called TBD which is developing a decentralised Decentralised exchange for cryptocurrencies and digital assets.
The move might’ve been quite predictable – especially in the wake of Dorsey’s exit from Twitter earlier this week – nonetheless potentially represents a significant moment in the continuing evolution of digital economies.
In fact, the company itself framed the news as merely a corporate rebranding exercise.
“We’ve been working to make this change for over a year, and it only represents a change of our official corporate name; not our purpose, our vision, our structure or how we operate,” Square said on Wednesday.
The company’s name is slated to formally change from December 10.
Market commentators at MyWallSt, in a note, said some Square shareholders investors may want to rethink their positions in light of this latest news.
“Now, I’m not saying that when it becomes Block in eight days that the company will suddenly pivot. It will continue to call its seller product Square, and the new corporate identity won't lead to any organizational changes,” MyWallSt said.
“But there’s no ignoring the elephant in the room; this Block rebranding is likely to coincide with a renewed push into crypto products.”
The research newsletter added: “At the end of the day, if you’re a Square investor, you’re probably ok with exposure to the world of crypto.
“However, if it’s just not your thing, you might want to consider your position as Dorsey is about to take this biz to a whole new level.”