Block (SQ) strengthens position in crypto mining industry: Analysts require transparency

Block (SQ) strengthens position in crypto mining industry: Analysts require transparency

block investors need more information about evaluating the earnings potential

The recent announcement by the payment technology company Block to venture into the crypto mining industry has attracted attention. However, analysts believe that investors need further details to evaluate the full earnings potential of this new direction.

Block, formerly known as Square and headed by Jack Dorsey, has recently completed a hardware deal with the Bitcoin-Miner Core Scientific. Although this step is considered promising, no financial details about this business are known.

Analysts by J.P. Morgan estimate that the Deal Block could bring in income of $ 225 to $ 300 million. Nevertheless, they emphasize that more information about the profit margins is necessary to create long -term forecasts.

The uncertainty about the earnings potential of the hardware business has had some investors hesitated. J.P. Morgan explains that you need more insight into the profitability of the business before you can submit your final assessment.

The deal with Core Scientific is an important step by block, which further strengthens its focus on crypto and blockchain technologies. This is a strategic move for the company that already invests 10 percent of its monthly profit from Bitcoin products in cryptocurrency.

Analysts see this deal an opportunity for block to establish itself as a leading player in the crypto hardware sector. Future similar shops could help to further consolidate the company's reputation in the industry.

However, it is pointed out that the performance of the block of Block will not only be determined by this new venture, but also by other segments of the company. So far, Block's shares have recorded a decline of almost 17 percent this year.

- Nag