PayPal's Crypto Holdings Hit $943 Million: $499M in Bitcoin, $362M in Ethereum
Takeaways:
PayPal has reported $943 million in cryptocurrency holdings for Q1 2023, a 56% increase from the previous quarter's $604 million.
The company holds $499 million in Bitcoin, $362 million in Ethereum, and $82 million in Bitcoin Cash and Litecoin.
PayPal considers its crypto assets a "safeguarding liability" due to the unique risks associated with cryptocurrencies.
Custody of the assets held on behalf of customers remains limited to third-party holding companies, presenting a liability for customers in case of transaction processing issues.
PayPal's profitability also increased in Q1 2023, with per-share earnings of $0.70 (GAAP) and $1.17 (non-GAAP).
PayPal has reported a significant increase in its cryptocurrency holdings for Q1 2023. The financial technology company now holds $943 million in cryptocurrency, up 56% from the previous quarter. The report shows that PayPal holds $499 million in Bitcoin, $362 million in Ethereum, and $82 million in Bitcoin Cash and Litecoin.
PayPal's Cryptocurrency Holdings:
PayPal has been steadily increasing its cryptocurrency holdings since it launched its crypto services in 2020. The company's latest report shows that it now holds a total of $943 million in crypto assets. Of this, $499 million is held in Bitcoin, $362 million in Ethereum, and $82 million in Bitcoin Cash and Litecoin.
"Unique Risks" Associated with Cryptocurrencies:
In its report, PayPal acknowledges the unique risks associated with cryptocurrencies and considers its crypto assets a "safeguarding liability." Custody of the assets held on behalf of customers remains limited to third-party holding companies. PayPal recognizes that this presents a liability for customers in the event that third parties are unable to process transactions.
Increased Profitability for PayPal:
The report also shows an increase in PayPal's profitability in Q1 2023. On a GAAP basis, the company disclosed per-share earnings of $0.70, up from $0.43 in the first quarter of 2022. On a non-GAAP basis, PayPal's per-share earnings were $1.17, up from $0.88 in Q1 2022.
Conclusion:
PayPal's Q1 2023 report shows a significant increase in its cryptocurrency holdings, with $943 million held in total. The company's growing investment in cryptocurrency indicates a continuing shift towards mainstream adoption of digital assets. However, the unique risks associated with cryptocurrencies, including third-party custody, remain a concern.
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