Block has announced plans to issue $1.5 billion in exclusive bonds for qualified institutional investors. The funds raised will be used for debt repayment, acquisitions, and strategic deals. Reportedly, Block's shares have climbed over 4% after the announcement.

Specifically, the terms of the bonds, such as interest rates and maturity dates, will be negotiated with initial buyers. Investors eligible to participate include pension funds, banks, investment funds, and high-net-worth individuals.

Following the news, Block's shares rose by more than 4%, trading at $72.40. The private process involves selling securities to a limited number of investors, rather than an initial public offering. Funds raised from the bonds will go towards repaying debts, potential acquisitions, capital investments, and working capital.

Fitch Ratings has noted that Block is expected to benefit from growth in payments and consumer financial services. The firm is currently relying on the convertible debt market for most of its external capital needs.

As of March 2024, Block had approximately $2.15 billion in convertible bonds in circulation. The debt increase is expected to support the refinancing of maturities in 2025-2026. Company co-founder Jack Dorsey has confirmed that Block will allocate 10% of the gross profit from Bitcoin products towards Bitcoin purchases each month.

Block had a successful first quarter of 2024, exceeding market expectations. Bitcoin gross profit was $80 million, representing 3% of the $2.73 billion in Bitcoin revenue. The Cash App saw a 25% increase in gross profit from the previous year, totaling $1.26 billion. Overall, the total gross profit for the quarter was up by 22%, reaching $2.09 billion with earnings of $0.85 per share and $5.96 billion in revenue.