So apparently, Tony Weid, House Republican from Wisconsin, just casino chipped $175k on Block stock. But, here’s the thing, he made the transaction on 2/28 (about two weeks ago), and is just now making the transaction public. So now that we know, the obvious question here is: What’s he seeing that the market isn’t? 

(Source: Giphy) 

In short, this move is definitely sus considering Block hasn’t exactly been a Wall Street darling lately. The stock got absolutely wrecked after its last earnings miss and has tumbled nearly 30% since. Yet, some analysts are saying it’s time to get on board (literally, that’s the title of a recent KBW report). So given this, is Weid just another dip buyer, or is there something much, much bigger going on? Spoiler: He likely knew something ahead of time. 

I say this because either Weid just got really lucky, or he knew that Block was about to get the FDIC’s blessing to start issuing consumer loans through its own bank, Square Financial Services (which they literally just did the DAY Weid made his trade public—coincidence? I think not). For Block though, this is huge because they’re officially cutting out the middleman (bye-bye, First Electronic Bank) and keeping all that brinks truck loan revenue in-house.

(Source: Payments Drive) 

Now what kind of loans are we talking about here? We’re talking short-term consumer loans through Cash App Borrow, which just so happens to target the same demographic that payday lenders have been feasting on for years. Meaning, Block is now a much cheaper alternative—as its loans are about one-sixth the cost of a typical payday loan.

For more context, a payday loan can hit an APR of 400% (yes, four hundred). Cash App’s loans charge a one-time 5% fee, which still isn’t cheap, but compared to the legalized loan sharking that is the payday industry, it’s practically a charity. Block originated $9 billion in loans in 2024, and now that they’re running the operation themselves, margin expansion is the name of the game. 

(Source: Barrons) 

On the other hand, let’s act as if Weid didn’t know about this beforehand (which he probably did, but for kicks and giggles let's say he didn’t), why is the Republican congressman betting nearly $200k on this stock? A few theories: For one, there’s the political angle. Payday lending is a legislative minefield, and Weid could be positioning himself ahead of potential reforms that make Cash App Borrow look even better by comparison. Which means, if the government cracks down on payday lenders, Cash App becomes the go-to alternative overnight.

Another idea is that Block’s stock is down 29% since earnings, but analysts are expecting a 70% growth acceleration in 2025, mostly fueled by Cash App’s new product launches (hint: loans). So if Block delivers, Weid just got a massive steal at these levels. OR, and this is more of a stretch, but Block is heavily involved in crypto. So Weid could hold inside intel that Paul Atkins is about to be confirmed and send crypto to the moon—which will in turn boost Block’s transaction revenue (a.k.a. A sneaky crypto play without buying Bitcoin directly.)

(Source: Giphy) 

Bottom line to all of this? Weid isn’t exactly YOLOing $175K on meme stocks, but buying into a fintech name with regulatory exposure while sitting in Congress? That’s always going to raise eyebrows. However, if Block’s consumer lending business takes off and Cash App Borrow becomes the anti-payday lender of choice, this could turn out to be a seriously profitable bet. 

Now only time will tell if that’s the case or not, but for now, do what you will with this information and place your bets accordingly. Just because our politicians are good inside traders, doesn’t mean that specific play is right for you. Meaning, always do your due diligence and research to ensure your ducks are in order. In the meantime, keep your eyes on Block and as always, stay safe and stay frosty! Until next time…

Stocks.News does not hold positions in companies mentioned in the article.