In just over a decade, Square transformed from a small hardware start-up to a dominant payments company.

• Since its launch, Square has expanded into a $50 billion-plus financial empire in thirteen years.
• Block operates an FDIC-insured bank, consumer payments platform, offers stock and cryptocurrency trading, and has made several high-profile acquisitions.
• Block earnings will be released after the market closes on Thursday, and the next decade of growth is predicted to revolve around blockchain and cryptocurrencies as CEO Jack Dorsey concentrates on "the digital currency of the internet."

CNBC examines the progress of companies on the Disruptor 50 list, 10 years after their initial recognition.

It all started with a tiny square card reader.

Jack Dorsey and Jim McKelvey, tech entrepreneurs, aimed to create a simple solution for artists and vendors to accept credit cards. Their answer was a small, rectangular device that could be plugged into an iPhone jack.

Since 2009, the two St. Louis natives have grown Square, now valued at $54 billion, into a financial powerhouse by capitalizing on the smartphone and online payment revolution.

Dorsey stated in a recent interview with MicroStrategy's CEO that they recognized a problem: the increasing use of plastic cards in the U.S. was beneficial for individuals due to convenience, but the issue was that many sellers were unable to accept cards. However, Dorsey added that they soon realized this was only the beginning of the problem.

Square, initially an iPhone dongle, transformed into an iPad app to eliminate the need for cash registers. The company struck a deal with Apple to sell its hardware in stores and later with Starbucks, becoming its official card processor. Subsequently, Square shifted its focus to small businesses, offering loans and payroll services. The company then acquired food delivery service Caviar and later sold it to DoorDash.

Block now operates an FDIC-insured bank, consumer payments platform, stock and cryptocurrency trading, and physical debit cards. Additionally, the San Francisco-based company acquired Jay-Z's music streaming service Tidal and buy-now-pay-later provider Afterpay.

Square's growth was mainly driven by funding from venture capitalists.

In 2009, Khosla Ventures led the first official round of funding for the company at a valuation of approximately $45 million, according to Pitchbook. The initial $10 million round was funded by early investors including Virgin Group founder Sir Richard Branson, former Yahoo CEO Marissa Mayer, Twitter co-founder Biz Stone, and Napster's Shawn Fanning. Later funding rounds brought in the venture capital arms of Visa, Citi, Starbucks, Goldman Sachs, as well as Silicon Valley giants Sequoia and Kleiner Perkins.

In 2015, Square went public, listing on the NYSE with ticker SQ and Dorsey as CEO. The company was valued at $2.97 billion, with shares priced at $9. Since then, Square's stock has increased by almost 900%.

The company's consumer-facing business experienced rapid growth, and the Cash App now accounts for approximately half of its revenue. This growth was largely driven by the pandemic as Americans shifted to digital banking.

Recently, Dorsey revealed that in the initial stages of Cash App, there were not many people who believed it was worth pursuing internally.

Dorsey stated at the Microstrategy conference in February that the Cash App was initially not considered necessary by everyone in the company. It was a difficult sell, and the team struggled to gain traction in the market. However, after finding a successful model, the Cash App became a success.

‘Native currency of the internet’

Dorsey has utilized the experimentation approach in various aspects of Block's enterprise, particularly in the realm of bitcoin.

In 2014, Square began experimenting with cryptocurrency within the Cash App and allowed online stores to accept it. However, the company saw few transactions, and the initiative "didn't really go anywhere."

Years later, the company resumed its efforts to facilitate the buying and selling of bitcoin on the Cash App, contributing $3.5 billion to revenue in the first quarter of the previous year, which was more than half of the total for the three-month period.

Block now has bitcoin on its balance sheet instead of cash and has launched several open-source crypto projects. The company is currently working on a decentralized cryptocurrency exchange and a mining project, and has a bitcoin-focused division called TBD.

Dorsey frequently refers to bitcoin as the "digital currency of the internet" and has been a prominent supporter of it.

Late last year, Twitter's CEO stepped down, stating that the company is prepared to transition from its founders.

Dorsey, who is 45 years old, will have more time to focus on his commitment to cryptocurrency while also dedicating more time to Block's growing portfolio.

The company's rebranding to Block reflects its aspirations in the cryptocurrency market and its expansion beyond its initial focus on credit card readers.

Dorsey stated that the Square brand was created for the Seller business and it will remain there. Although Block is a new name, the company's purpose of economic empowerment will remain the same. The company will continue to develop tools to increase access to the economy, regardless of growth or changes.

Despite being one of the biggest winners during the pandemic era due to high-growth tech stocks, Block's share price has fallen back to its pre-pandemic levels as investors shift away from high valuations, with the threat of higher interest rates looming over future growth.

The company reports earnings after the closing bell Thursday and investors are closely watching Block's forecast for 2022, as well as its plans to execute on the next era of growth, with shares having dropped more than 45% this year alone.