After the takeover attempt, Twitter’s stock began to climb, and in February, Mr. Dorsey announced an ambitious plan to double Twitter’s revenue by the end of 2023.
But some of Twitter’s stock market gains have slipped away in recent months, with the stock now worth roughly the same as it was a year ago. In the third quarter, Twitter said its revenue grew 37 percent from a year ago, to $1.28 billion, but that it incurred a loss of $537 million.
In addition to investor scrutiny, Mr. Dorsey has also faced pressure from legislators. Some have demanded that the company do more to address misinformation and hate speech on the platform, while others have accused Mr. Dorsey of censorship and argued Twitter should allow more content to remain online.
The moderation issues, and the legislative debate swirling around them, have been a persistent irritation for Mr. Dorsey. He had envisioned Twitter as a platform for free speech and bristled at the idea of removing content, especially from world leaders and other newsworthy figures.
But Mr. Trump’s incendiary tweets tested Mr. Dorsey’s stance. Twitter at first compromised by labeling some of Mr. Trump’s tweets as misinformation, before finally removing his account.
The majority of Mr. Dorsey’s wealth comes from Square, which he founded in 2009 during his last departure from Twitter. Last April, Mr. Dorsey announced he would donate $1 billion, or nearly a third of his total wealth, to relief programs related to the coronavirus and other philanthropic endeavors.
Twitter’s stock jumped 5 percent on the news before a halt in trading.
On Sunday night, in what was perhaps a foreshadowing of the news to come, Mr. Dorsey tweeted, “I love Twitter.”
This is a developing story. Check back for updates.