Jack Dorsey-led Block set to join S&P 500 index in new milestone, to replace Hess
The fintech firm will replace Hess Corp. in the benchmark, following Chevron Corp.'s $53 billion acquisition of the energy producer.
The changes will go into effect prior to the start of trading on July 23, according to a press release from S&P Dow Jones Indices Friday. Shares of Block rose as much as 14% in after-hours trading.
Block, formerly known as Square, has evolved from a payments processor into a broader fintech player, offering peer-to-peer transfers, merchant services, and increasingly, consumer lending.
Earlier this year, Block's industrial bank subsidiary Square Financial Services Inc. received approval from the US Federal Deposit Insurance Corp. to begin offering consumer loans directly through the Cash App Borrow product.
The company is also integrating Bitcoin payment capabilities into its Square terminals, reflecting Dorsey's long-standing advocacy for Bitcoin. He remains an influential voice in the digital-asset world, recently sharing open-source coding projects on X.
Block is aiming to turn Cash App into a full-scale banking and lending product, even as the company grapples with uneven earnings results.
Inclusion in the US equity benchmark can elevate a company's profile and is becoming more important as passive investment funds grow. Expulsion from the benchmark can weigh on stock prices, as index funds sell shares to realign with the S&P 500's new composition.
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Mint
2 hours ago
- Mint
Subhash Chandra Garg: Don't vacillate on a regulatory framework for crypto assets
Next Story Subhash Chandra Garg India must catch up with other jurisdictions on setting up a mechanism for the legal oversight of digital assets that can assure investors the safety of their investments. Too many frauds have occurred. Time is ticking away but it's not too late to leap ahead. A strong regulatory ecosystem for crypto assets would enable Indians to participate in this market with confidence. Gift this article In early 2019, a committee I headed as secretary, department of economic affairs, proposed a law for digital currencies that would lay down the statutory base for a blockchain-based crypto assets ecosystem. In early 2019, a committee I headed as secretary, department of economic affairs, proposed a law for digital currencies that would lay down the statutory base for a blockchain-based crypto assets ecosystem. There was no follow-up on it and India still has no statute or regulation that defines 'crypto assets' and the rules of running a crypto business in the country. In the meantime, the world has moved rapidly towards mainstreaming crypto assets and crypto-currencies. The US Senate recently passed the GENIUS Act, legalizing privately issued dollar-backed stablecoins. The market value of cryptocurrencies now exceeds $3.25 trillion. If all cryptocurrencies are taken as a single currency, it would be the world's tenth largest by value. Can India continue to ignore crypto assets? Why should India not go about building a sound statutory and regulatory ecosystem for them? Also Read: Defence alert: Crypto is turning into a geopolitical weapon The consequences of inaction: I have closely watched India's crypto ecosystem over the past decade. Despite the absence of regulations, many crypto exchanges were set up. Operating outside the law or in a grey zone without a legal framework, they flourished for some time by conducting an incoherent mix of legitimate and illegitimate transactions. Then crypto gains were brought under the tax net, trading almost collapsed and some frauds came to light. GainBitcoin, a Ponzi-style multi-level marketing scheme that ran from 2015 to 2018, allegedly duped thousands of investors of an estimated ₹ 6,600 crore by promising fixed monthly returns of 10% on Bitcoin deposits, leaving scheme subscribers with worthless 'market capitalization' tokens. The Central Bureau of Investigation has been investigating it and conducting raids. Also Read: The triumph of crypto bros: Don't just shrug and move on WazirX, India's largest crypto exchange, faced Enforcement Directorate searches in August 2022, which led to the global exchange Binance publicly distancing itself from WazirX despite an earlier ownership claim, causing widespread confusion. In 2024, WazirX suffered a massive hack that resulted in the loss of 45% of the user assets (worth $230 million) held by it. There is no recourse in sight for the investors who lost their crypto assets. In a Singapore court, WazirX proposed a restructuring plan to distribute the remaining user assets. The proceedings reveal a tale of compromises, hidden actors and regulatory violations, including operations conducted without a digital token service provider (DTSP) licence. They also exposed an offshore entity registered in Panama that held effective operational control. Under the radar are numerous fly-by-night operators with various schemes aimed aggressively at retail investors in small cities. Some online exchanges are fake; others end in rug pulls, leaving asset buyers clueless once these platforms vanish. To prevent such fraud, India needs smart, enforceable and investor-centric crypto regulations. Let crypto crises not go waste: All the crypto crises we have faced, involving substantial erosion in the wealth of crypto investors, have reinforced what I have long maintained: India's approach to crypto assets has been piecemeal, passive and systemically unsustainable. We must bring crypto-asset operations in India within the ambit of a defined and enforceable legal and regulatory framework that would help create a fair and transparent system of ownership and trading. We should break the existing legal and regulatory logjam by separating trading, custody, lending, broking and technical services. This will help eliminate problems of groupthink and moral hazard (risky actions taken in the belief that someone else will bear the consequences). We also have to provide legal recourse to investors if a platform fails or causes them other forms of suffering. This is a moment of reckoning: We can avoid the flawed models of early crypto adopters. We know how to build large-scale digital systems. We built Aadhaar for identity, the Unified Payments Interface for payments and the goods and services tax network for taxation. We can surely build a reliable governance framework for digital assets and exchanges that operate as marketplaces for trades. These exchanges would ensure liquidity under the watch of independent custodians and a comprehensive regulatory mechanism. We can lean on global experiences. The EU's Markets in Crypto-Assets Regulation, for example, lays down clear responsibilities for operators and custodians. The GENIUS Act of the US focuses on regulating stablecoins. Even Pakistan is currently establishing a crypto-regulatory authority. India, a country that pioneered innovative infrastructure for fintech and digital payments, must not remain on the sidelines. We need to create space for well-regulated digital assets to thrive. Also Read: Rupee-backed stablecoins could complement RBI's digital currency India's new crypto assets ecosystem should have four cornerstones: First, clearly segregated functions for crypto exchanges, brokers, aggregators, custodians and other entities: These must be recognized as distinct players with defined roles. Second, compulsory licensing: All entities in the ecosystem must operate within sound financial regulatory oversight. Third, full and functional transparency: Institute regular audits, disclosure norms for operational structures and mechanisms for incident reporting. Fourth, insistence on Indian jurisdiction: Asset ownership and contractual agreements must be legally enforceable under a specific Indian law. In addition, we need strong penalties for fraud and false advertising to deter all actors with any mala fide intent. If we build a strong statutory and regulatory ecosystem for crypto assets, Indians would be able to participate in this market with confidence in the safety of their investments. Global investors will see India as a sound market. With clear obligations to meet, operators would focus on responsible innovation and safeguarding investor interests. Delays are costly, but India still has a leadership opportunity here. The time to act is now. The author is former finance secretary of India. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Mint
4 hours ago
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Kraft Heinz split: Cold cheeses are a burden for its hot sauces
When schools returned to in-person learning in the fall of 2021 after the pandemic, parents scrambled to find Lunchables to put in their children's backpacks. Today, the meal kit of processed meats and cheese may be off the menu amid the desire for healthier food, but its manufacturer, Kraft Heinz, is firmly on it. The company is exploring spinning off the division that makes Lunchables, alongside Kraft cheese and Oscar Mayer hot dogs from its faster-growing arm that makes ketchup. A split could deliver modest value for shareholders. The biggest upside, though, would come from tempting bidders to pay up for each of the individual companies. To recap: Warren Buffett's Berkshire Hathaway and private equity firm 3G Capital acquired J.H. Heinz for $28 billion, including debt, in 2013. Two years later, they merged it with Kraft Foods, the US grocery business that had been spun out of what would become Mondelez International (more on that later). Also Read: Face the M&A truth: Mergers are glitter but grit is gold But Kraft Heinz has grappled with changing consumer tastes and, most recently, the rise of GLP-1 weight-loss drugs. As sales have come under pressure, its shares have lost 70% since 2017. Little wonder then that the company said in May that it was 'evaluating potential strategic transactions" to boost its stock price. The logic for a split is straightforward. Kraft Heinz's sauces, spreads and condiments business, which generates annual sales of about $11 billion, is growing faster than processed meat and cheese. People are seeking more flavour in their food, particularly if their appetites shrink—either because they are getting older or taking obesity treatments. Freed from their more sluggish sibling, brands like Grey Poupon mustard and Lea & Perrins sauce could command a higher valuation multiple. There is a precedent here—ironically from Mondelez. After Kraft was spun off, Mondelez retained the sexier international, confectionary and snacking segments. It has delivered a total return of over 200% since October 2012, almost double the S&P 500 Packaged Foods Index, and trades at a forward enterprise value-to-ebitda multiple of about 15. Kraft Heinz's slower-growing grocery arm, which could have sales of about $14.5 billion, would be valued less generously. It would still be highly cash generative, though, so it could appeal to an investor looking for a steady dividend payer. Analysts at T.D. Cowen estimate that the sauces, spreads and condiments division could be worth $29.5 billion and the grocery arm about $25 billion. Together, that's only just ahead of Kraft Heinz's enterprise value of $51 billion. Also Read: To split up or not? Conglomerates should never go by off-the-shelf answers Given that much of the upside might be swallowed by the higher costs of operating both companies, why bother with a breakup? Because both companies might prove tantalizing to a bidder. This is exactly what happened in the case of Kellogg. The company spun off its North American cereals business as W.K. Kellogg Company in late 2023. The racier snack-foods arm, maker of Cheez-It and Pringles, was renamed Kellanova. Almost a year ago, Mars paid $36 billion, including debt, for Kellanova, a 44% premium to the share price in the preceding 30 days. Last week, privately held Ferrero International, maker of Nutella, agreed to buy W.K. Kellogg, whose brands include Froot Loops and Corn Flakes, for an enterprise value of $3.1 billion. The $23-a-share cash offer equated to a 40% premium to the share price in the preceding 30 days. Kraft Heinz's sauces, spreads and condiments arm would fit in McCormick's portfolio, an analyst at Bloomberg Intelligence told me, although there may be competition concerns. And now that Unilever is offloading its ice-cream business, might it be interested in bulking up in dressings? Also Read: The Godrej split holds valuable lessons for family businesses As for the grocery business, it could appeal to a private equity buyer drawn to its cash flow. One complication is that Kraft Heinz is expected to have net debt of just over $18 billion at the end of this year, and much of that is likely to be allocated to the food maker. This might make it harder for a financial buyer to load up on borrowings. Still, if this hurdle could be overcome, there could be scope to add other low-growth but cash-generative food businesses to build scale. If both of Kraft Heinz's component parts are as successful in selling themselves as Kellogg's, this would certainly be a tasty treat for investors. Since news of Kraft Heinz potentially doing the splits broke at the weekend, there has been much discussion of de-consolidation in the consumer sector. But like Lunchables leaving school bags, this looks more like a prelude to a corporate disappearing act. ©Bloomberg The author is a Bloomberg Opinion columnist covering consumer goods and the retail industry.
India Today
6 hours ago
- India Today
India's rich are swapping gold for bitcoin. Here's Why
For generations, gold has been the crown jewel of wealth for Indian families. From family vaults to wedding gifts, it has symbolised trust, security, and cultural pride. But times are changing, and so is how the wealthy manage their a quiet but noticeable shift is happening. More of India's rich are putting a slice of their gold-backed wealth into shiny new digital coins like DRIVING THE SHIFT?So, what's fuelling this move away from the familiar yellow metal to a digital asset that didn't even exist two decades ago? According to Edul Patel, CEO and Co-Founder of Mudrex, 'Since the US elections last year, interest in crypto has gone up globally, boosting overall confidence. In India, more HNIs and family offices are starting to add crypto to their portfolios — mainly for diversification and as a hedge.''At Mudrex, about 30% of our volumes now come from this group. They usually invest 2–5% in digital assets like Bitcoin, Ethereum, and Solana, these three alone make up nearly 70% of those investments,' he GROWING APPEALWhat makes Bitcoin stand out? Its biggest pull today is rising institutional interest and clearer rules. As the crypto market matures, Bitcoin's wild price swings are also settling down cycle by cycle, making it more attractive for the long Gupta, co-founder of CoinDCX, explains, 'The mindset among wealthy Indian investors is changing, from asking why they should invest in crypto, to how much they should allocate to it in a well-diversified portfolio.'He says trust is growing thanks to big global names like BlackRock launching Bitcoin ETFs. 'Moves like this send a strong signal that Bitcoin is no longer just for tech geeks, it's becoming part of mainstream finance,' Gupta RISK AND REWARDOf course, Bitcoin's journey is far from risk-free. India's wealthy know this. So how do they balance Bitcoin's promise of high returns with its reputation for big swings?Patel says the wealthy treat crypto with measured caution. 'We typically see them allocating no more than 2–5% of their portfolios to digital assets, which reflects a clear understanding of the inherent risks and volatility. This conservative allocation allows them to tap into the potential upside of crypto while maintaining overall portfolio stability,' it Gupta draws a parallel with the early internet boom. 'Investors are selective, focusing on high-conviction assets like Bitcoin, Ethereum, and key Layer 1s, where fundamentals are becoming clearer and institutional interest is deepening.' Many also bring in trusted advisors and build special teams inside family offices to handle crypto safely, he Maradiya, Founder and Chairman of CIFDAQ, says Bitcoin's eye-catching returns are hard to ignore. 'Bitcoin's outsized returns, nearly 70% CAGR over a decade, are drawing HNIs seeking higher growth than gold's conservative 6–8%.''They treat crypto as a high-risk, high-reward slice (5–8%) of their portfolio. Exposure is managed through family offices, professional fund managers, long-term horizons, and diversification across Bitcoin, Ethereum, stablecoins, and Web3 startups. Secure custody and regulated platforms reduce operational risk,' he NEXT-GEN PUSHSo, who's sparking these crypto conversations at India's lavish dinner tables? It's the next points out that next-gen heirs are often the first to raise the idea. 'Being more tech-savvy and open to new asset classes, they're often the ones initiating conversations around crypto,' it added, 'Next-gen heirs are driving digital diversification. They influence family office strategies, push for crypto and other digital assets, and are even embedding them into succession and estate planning.'OLD GOLD, NEW COINSOf course, Bitcoin isn't risk-free. Maradiya warns that its price can swing wildly, its yearly ups and downs are four times bigger than gold's. Plus, there's India's flat 30% tax on crypto gains and a 1% TDS, which can eat into profits. HNIs are tackling this with careful position sizing, secure storage, and professional help to avoid hacks or experts believe it won't replace gold but will sit next to it. Patel believes Bitcoin will become a bigger part of India's wealth plans in the next five years, as better rules and digital infrastructure take shape.'As regulatory clarity improves and digital infrastructure matures, we anticipate a significant rise in allocations toward Bitcoin, especially among younger HNIs and progressive family offices who see it as digital gold for the 21st century,' he agrees gold's emotional and cultural value is unmatched in India, but Bitcoin brings something new: digital, scarce, and borderless. 'It's not about replacing gold, but about diversifying beyond it,' he sees Bitcoin forming 5–10% of HNI portfolios in the coming decade, fuelled by younger investors and new offerings like Bitcoin the end, gold and Bitcoin are unlikely rivals, they're becoming partners. One is timeless, the other is cutting-edge. Together, they show how India's wealthy are blending old and new to shape the future of wealth, one coin at a time.- Ends advertisement
