Block stated in an FAQ document: “We’ve recently received some questions from investors that we want to answer. This document is generally ranked by frequency, most asked to least. Thematically most of the questions we’ve received have to do with how we measure Cash App transacting actives and our compliance program. As we look forward to our next public conversation with you all, our Q1’23 earnings call, we’ll include more discussion on Cash App’s stated priority of Trust… Cash App is built to support customers who may want to maintain multiple accounts… We disclose in our current 10-K filing with the SEC, that one customer may be associated with one or more accounts. We also disclose that a ‘transacting active’ is a Cash App account that has at least one financial transaction using any product or service within Cash App during the specified period. We reported that as of December 2022, Cash App had more than 51 million monthly transacting actives. We believe this approach is more conservative than potential alternative measurements… As of December 2022, Cash App had more than 51 million monthly transacting actives. Of these, approximately 44 million were connected to an identity verified through our Identity Verification – IDV – program… The 44 million verified accounts represented approximately 39 million unique Social Security numbers as of December 2022 (we use Social Security number as a logical, unique identifier to estimate the number of identities in this analysis)… We estimate that the 44 million verified accounts constituted approximately 97% of Cash App inflows in December 2022.” On March 23, Block said in a statement: “We intend to work with the SEC and explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today.”
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