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• Earlier this week, ARK Invest purchased over US$30.9 million worth of Block Inc. shares across three exchange-traded funds, including ARKK, ARKW, and ARKF, highlighting continued interest among institutional investors.

• This investment comes as Block accelerates its rollout of integrated bitcoin solutions for merchants, further cementing its role at the intersection of digital payments and cryptocurrency adoption.

• We’ll explore how ARK Invest’s expanded position in Block underscores confidence in the company’s advancing crypto and payments ecosystem.

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To own Block shares, you need to believe in the long-term relevance of its two-sided payments and banking ecosystem, built around Cash App and Square, especially as digital finance and bitcoin adoption expand. ARK Invest’s sizable US$30.9 million purchase showcases institutional optimism but does not materially change the core risk: Block’s earnings remain highly sensitive to bitcoin-related revenue fluctuations and ongoing competitive threats in peer-to-peer payments, which may be amplified or mitigated in the near term by broader crypto trends.

The most relevant recent announcement is the rollout of Square’s new integrated bitcoin payments solution for merchants, making it easier for businesses to seamlessly accept, hold, and convert bitcoin through Square’s point-of-sale system. This initiative directly aligns with Block’s push to deepen cryptocurrency integration, one of its central growth catalysts, by strengthening its merchant platform and reinforcing its role as a bridge between digital asset adoption and real-world payments.

But while interest in bitcoin solutions is growing, investors should pay careful attention to the risk that…

Read the full narrative on Block (it’s free!)

Block’s outlook anticipates $32.8 billion in revenue and $2.4 billion in earnings by 2028. This is based on a projected 11.3% annual revenue growth rate, but earnings are forecast to decrease by $0.6 billion from the current $3.0 billion.

Uncover how Block’s forecasts yield a $88.40 fair value, a 16% upside to its current price.

Seventeen members of the Simply Wall St Community estimate Block’s fair value between US$60.37 and US$104, showing a wide range of outlooks. With Block’s ongoing integration of bitcoin payments for merchants, this diversity hints at how opinions can differ around the business’s exposure to crypto volatility, open these alternative perspectives to understand what could drive future results.

Explore 17 other fair value estimates on Block – why the stock might be worth as much as 37% more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Early movers are already taking notice. See the stocks they’re targeting before they’ve flown the coop:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include XYZ.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Warren Buffett offloaded stocks for the third consecutive year, as the chief executive of Berkshire Hathaway enters his final months at the sprawling conglomerate he built over more than six decades.

Berkshire Hathaway disclosed on Saturday that it had sold another $6.1bn of common stock in the three months to September 30. Buffett has seen more opportunities in selling than buying equities for the past three years, with stock prices rising precipitously across several sectors.

The conglomerate’s cash reserves also continued to climb and reached a record for the quarter, with $382bn flowing in from a business that spans insurance, manufacturing, utilities and one of North America’s biggest railways. Berkshire once again did not buy back any shares during the quarter.

The group’s share price has lagged the benchmark S&P 500 index since Buffett announced plans to step down as chief executive at the end of this year. He will be succeeded by Greg Abel, who is head of Berkshire’s non-insurance businesses, in January.

This is a developing story