Block shares (SQ) hit a new 52-week low on Wednesday, trading at $ 131 per share. Shares of the digital payments company fell as part of a rotation of growth and risk assets amid concerns about the Fed’s rate hikes.
The company formerly known as Square is down about 31% since it announced its company name change to Block on December 1 of last year.
Block founder and CEO Jack Dorsey announced Thursday that the company is “officially building an open bitcoin mining system.”
Dorsey also retweeted a series of tweets from Block’s general manager of hardware, Thomas Templeton, exposing the plan.
“We want to make mining more distributed and efficient in every way, from purchasing, to setting up, to maintenance, to mining,” Templeton wrote, later adding: “We see it as a long-term need for a fully decentralized, permissionless future.”
The company’s rebranding was seen as a nod to the company’s growing focus on blockchain, the technology behind cryptocurrencies such as Bitcoin (BTC-USD).
Block’s market performance has moved relatively in tandem with the cryptocurrency, which has been declining from its November highs.
Other crypto-related stocks have also seen declines in recent weeks, such as Riot Blockchain (RIOT), Marathon Digital (MARA), and Future Fintech (FTFT).
On Friday, analysts at Deutsche Bank and Keybanc lowered their target price for the share to $ 210 from $ 330 and $ 225 from $ 300 respectively.
The majority of Wall Street analysts are bullish on Block, with 18 buy, 10 hold and zero sell recommendations.
Last year, the company announced the acquisition of Afterpay, the Australian “buy now, pay later” platform, for $29 billion. The deal was viewed positively by several Wall Street analysts.
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