According to PANews, Block, formerly known as Square and led by Jack Dorsey, has announced plans to issue $1.5 billion in preferred notes to qualified institutional investors through a private placement. The terms of the notes, including the interest rate and maturity date, are still to be negotiated with the initial buyers. The investors approved to participate in this round of financing include pension funds, banks, mutual funds, and high-net-worth individuals.
Fitch Ratings believes that Block has the ability to seize long-term growth opportunities in the payment and consumer financial services sector. In a previous letter to shareholders, Jack Dorsey stated that Block plans to use 10% of the gross profit from its Bitcoin products each month to purchase Bitcoin. Between the fourth quarter of 2020 and the first quarter of 2021, Block purchased $220 million worth of Bitcoin.
