The Bull Case For Block (SQ) Could Change Following ARK Invest’s $30.9M Share Purchase and Bitcoin Push
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Earlier this week, ARK Invest purchased over US$30.9 million worth of Block Inc. shares across three exchange-traded funds, including ARKK, ARKW, and ARKF, highlighting continued interest among institutional investors.
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This investment comes as Block accelerates its rollout of integrated bitcoin solutions for merchants, further cementing its role at the intersection of digital payments and cryptocurrency adoption.
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We'll explore how ARK Invest's expanded position in Block underscores confidence in the company's advancing crypto and payments ecosystem.
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Block Investment Narrative Recap
To own Block shares, you need to believe in the long-term relevance of its two-sided payments and banking ecosystem, built around Cash App and Square, especially as digital finance and bitcoin adoption expand. ARK Invest’s sizable US$30.9 million purchase showcases institutional optimism but does not materially change the core risk: Block’s earnings remain highly sensitive to bitcoin-related revenue fluctuations and ongoing competitive threats in peer-to-peer payments, which may be amplified or mitigated in the near term by broader crypto trends.
The most relevant recent announcement is the rollout of Square’s new integrated bitcoin payments solution for merchants, making it easier for businesses to seamlessly accept, hold, and convert bitcoin through Square’s point-of-sale system. This initiative directly aligns with Block's push to deepen cryptocurrency integration, one of its central growth catalysts, by strengthening its merchant platform and reinforcing its role as a bridge between digital asset adoption and real-world payments.
But while interest in bitcoin solutions is growing, investors should pay careful attention to the risk that...
Read the full narrative on Block (it's free!)
Block's outlook anticipates $32.8 billion in revenue and $2.4 billion in earnings by 2028. This is based on a projected 11.3% annual revenue growth rate, but earnings are forecast to decrease by $0.6 billion from the current $3.0 billion.
Uncover how Block's forecasts yield a $88.40 fair value, a 16% upside to its current price.
Exploring Other Perspectives
Seventeen members of the Simply Wall St Community estimate Block’s fair value between US$60.37 and US$104, showing a wide range of outlooks. With Block’s ongoing integration of bitcoin payments for merchants, this diversity hints at how opinions can differ around the business’s exposure to crypto volatility, open these alternative perspectives to understand what could drive future results.
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