BLOCK LANDS MAJOR CRYPTO MINING DEAL, ANALYSTS DEMAND MORE CLARITY
Block, under Jack Dorsey's leadership, just sealed a major crypto mining hardware deal with Core Scientific, estimated at $225M-$300M.
JP Morgan is pressing for more details on profit margins to accurately assess long-term potential.
Block has been steadily rebranding since 2021, with a strong focus on crypto and blockchain, investing 10% of its monthly bitcoin profits back into BTC.
With 9% of its Q1 cash in bitcoin, Block is heavily vested in crypto's future.
Despite these moves, Block's shares have dropped 17% this year, reflecting the need for clearer financials.
Macquarie analysts see this deal as solidifying Block's standing in the crypto hardware industry.
Source: Reuters
