Twitter founder loses Rs 4,165 crore in Hindenburg's new report

 Twitter founder loses Rs 4,165 crore in Hindenburg's new report

 Jack Dorsey, the co-founder of Twitter and Square, has suffered a major financial setback after the release of a new report by Hindenburg Research. According to the report, Dorsey's digital payments company, Square, has been misleading investors about its business practices, resulting in a significant drop in the company's stock price. As a result, Dorsey has lost a whopping Rs 4,165 crore in just one day.

 Hindenburg Research, a short-selling firm, released a report on Thursday that accused Square of making misleading claims about its bitcoin business. According to the report, Square's bitcoin revenue is generated by customers who are "primarily active traders," rather than the everyday consumers that the company has claimed to be targeting. The report also claimed that Square's bitcoin business is only profitable due to the company's practice of "aggressively" buying bitcoin and immediately selling it for a profit.

 The report had an immediate impact on Square's stock price, which fell more than 6% in pre-market trading on Thursday. The stock continued to drop throughout the day, ultimately closing down more than 11%. As a result, Dorsey, who owns more than 15 million shares of Square, lost more than Rs 4,265 crore in just one day.

 This is not the first time that Hindenburg Research has targeted a high-profile company. The firm is known for its aggressive short-selling tactics and has previously released reports on companies such as Nikola and Clover Health, which resulted in significant drops in their stock prices.

 Despite the negative impact of the report on Square's stock price, the company has defended its bitcoin business and dismissed the claims made in the report. In a statement, Square said that it "believes that Hindenburg's allegations are false and misleading" and that it "will be presenting the facts and our side of the story."

 The controversy surrounding Square's bitcoin business and the Hindenburg report is just the latest challenge for Dorsey, who has faced criticism in the past for his leadership of both Twitter and Square. Some investors have called for Dorsey to step down from his role as CEO of both companies, citing concerns about his ability to lead effectively.

 The loss of Rs 4,165 crore is a significant blow for Dorsey, but it remains to be seen how the controversy will impact Square and its bitcoin business in the long term. As the company continues to defend itself against the allegations made in the Hindenburg report, investors will be closely watching to see how the situation unfolds.