Categories: Crypto

Jack Dorsey’s Block to raise $1.5B in notes offering for corporate growth

Key Takeaways

Block plans to issue $1.5 billion through a private senior notes offering to institutional investors.
Proceeds will be used for corporate purposes including debt repayment, acquisitions, and capital investments.

Block, Jack Dorsey’s fintech firm, announced on Wednesday its plans to offer $1.5 billion in senior notes through a private placement to qualified institutional buyers.

The Oakland, California-based company said it will determine the interest rate, redemption provisions, maturity date, and other terms for the two series of notes through negotiations with initial purchasers.

According to Block, the proceeds will be used for a variety of corporate purposes, including debt repayment and repurchase, acquisitions and strategic deals, capital expenditures, investments, and working capital.

Block, listed on the NYSE under ticker XYZ, was among the first public companies to hold Bitcoin on their balance sheet. After acquiring 108 BTC in the second quarter, it now holds 8,692 BTC valued at over $1 billion.

In addition to holding BTC, Block is building a comprehensive Bitcoin ecosystem through various brands like Square, Cash App, Afterpay, Bitkey, and Proto.

Proto, Block’s Bitcoin mining initiative, is set to launch new Bitcoin mining chips this week, while Square is preparing to roll out Bitcoin payment options for its sellers.