The American financial giant Paypal Holdings Inc. has published its Q1 results, revealing that its cryptocurrency holdings are almost worth $1 billion.
In its Q1 earnings report, the world’s largest online payment company PayPal announced that it significantly increased its cryptocurrency holdings to about $1 billion.
Insight Into Paypal Earnings
PayPal reported a combined total of $943 million in cryptocurrency holdings as of March 31, 2023, per first-quarter reports filed to the Securities and Exchange Commission (SEC). Surprisingly, PayPal revealed that it had over $604 million in cryptocurrencies in the preceding quarter, which was a huge increase.
PayPal’s cryptocurrency assets are made up of $82 million in Bitcoin Cash BCH and Litecoin (up from $63 million), $499 million in Bitcoin (up from $291 million in December), $362 million in Ether (up from $250 million), and more.
The online platform also said that the overall financial liabilities for the quarter were $1.2 billion, with crypto assets accounting for 77.9% of those liabilities, representing a rise of more than 10% from the disclosed Q4 liabilities for 2022.
Notably, since launching its cryptocurrency service in the United States in 2021, the company has been growing its cryptocurrency offerings. Through their PayPal accounts, customers are able to use the service to immediately purchase, hold, and sell bitcoins. Meanwhile, it appears that the Venmo owner, the payments firm, outsources the custodial services rather than maintaining the crypto assets in its own ownership.
Read More: Payments via PayPal can be made to external wallets
It’s interesting to note that the business understands that clients may be held responsible if third-party processors are unable to complete transactions. The SEC report does, however, also note that no such failure has yet taken place.
It is important to remember that the corporation has to contend with other rivals in its attempt to rule the cryptocurrency market. For instance, Elon Musk previously said he was developing a Twitter payment system that will be better than PayPal.
The Importance of PayPal Inc.’s Increasing Crypto Holdings
PayPal’s increased cryptocurrency holdings are evidence of the firm’s confidence in the potential digital currency. The action also highlights the growing public acceptance of cryptocurrencies, which are increasingly being seen by important financial institutions and organizations as legitimate investment assets.
Additionally, the value of the cryptocurrencies PayPal holds could increase as a result of its expanding holdings. The demand for cryptocurrencies increases as PayPal continues to acquire and hold more of them, potentially pushing up the price of such assets.
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