Block’s Stock Surges After S&P 500 Inclusion

San Francisco, CA – Block Inc., the fintech company founded by Jack Dorsey, experienced a nearly 10% surge in its stock during extended trading on Friday. This spike followed the announcement that Block will replace Hess Corp. in the S&P 500 index, effective before market opening next Wednesday.

The upgrade to the benchmark index is anticipated to improve Block’s visibility and draw in more institutional investors. The inclusion also comes at a time when Block is diversifying its services, extending into cryptocurrencies and lending.

Block’s shares rose to $79, pushing its market capitalization up to $44.8 billion according to TradingView. This news arrives after the company reported disappointing quarterly earnings in May, attributing challenges to economic conditions from tariff announcements made by former President Donald Trump.

Despite recent struggles, the financial community views Block’s addition to the S&P 500 as a strong vote of confidence. This change may increase demand for its shares among institutional investors, who typically adjust their portfolios based on index changes.

The cryptocurrency sector welcomed the news, interpreting it as a sign of growing mainstream acceptance of digital currencies. Block currently holds 8,584 bitcoins and is integrating Bitcoin into its offerings.

Meeting strict financial criteria is essential for a company’s inclusion in the S&P 500, which includes having a positive net income over the last four quarters and a market cap above $18 billion. Block has continually satisfied these requirements.

While stocks often perform better after being added to the S&P 500, Block’s substantial bitcoin holdings may also contribute to its appeal, potentially leading to further increases in stock prices.