PayPal Reveals It Has Nearly $1B Of Crypto Assets• May 10, 2023 3:12 pm • Comments
It appears that more and more public companies are now including cryptocurrencies as part of their balance sheets these days.
These companies include firms like Tesla and MicroStrategy which many investors see as a way to get indirect exposure to digital assets.
The latest company that revealed that it owned crypto assets was PayPal which recently disclosed around $1 billion worth of digital assets on its recent SEC filing.
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PayPal has already been involved in the crypto industry business by allowing users to buy crypto, but this is the first time that the firm has revealed that it was holding on to such a significant amount.
As a result, this is clear that crypto is gaining traction as a way to diversify company holdings which may further fuel the industry’s growth.
— Kourosh (@kouroshshafi) May 9, 2023
The company indicated that it holds $943 million worth of customer assets in bitcoin (BTC), ether (ETH), bitcoin cash (BCH) and litecoin (LTC) on its balance sheet.
A 10-Q filing is a quarterly financial performance report mandated by the SEC to disclose financial information.
From the end of last year, the company reported an increase of $339 million in customer crypto assets.
“We maintain the internal recordkeeping of our customers’ crypto assets, including the amount and type of crypto asset owned by each of our customers,” PayPal said in its 10-Q.
The company does not hold cryptocurrencies outside of its customer assets on its balance sheet.
Of course, as many of the assets that it is holding belongs to customers, this may pose as a significant risk as there is always the chance that the crypto gets lost.
After all, owning the private keys of a wallet is the only way to ensure you have control and ownership over your crypto assets.
More recently, the company has expanded its crypto services to Venmo as well which will support crypto transfers as well.
As crypto services become more and more integrated with financial services companies, it is essential for investors to take the necessary precautions to ensure their assets are safe.
The continued adoption of crypto by PayPal will ultimately help fuel future growth for many crypto tokens as it promotes more mainstream adoption.
PayPal holds $1 billion of #crypto according to its Q1 report:
– $499 million in #Bitcoin
– $362 million in Ethereum
– $82 million in Bitcoin Cash and Litecoin
— Financial Index (@financial_index) May 9, 2023
According to the report, PayPal considers its crypto assets a “safeguarding liability” due to the “unique risks associated with cryptocurrencies.” The disclosure also indicates that the specific cryptocurrencies held by the company remain unchanged since last quarter:
“We allow our customers in certain markets to buy, hold, sell, receive, and send certain cryptocurrencies as well as use the proceeds from sales of cryptocurrencies to pay for purchases at checkout. These cryptocurrencies consist of Bitcoin, Ethereum, Bitcoin Cash, and Litecoin (collectively, ‘our customers’ crypto assets’).”
Custody of the assets PayPal holds on behalf of its customers remains limited to third-party holding companies.
BREAKING: PayPal discloses that they are HOLDING over $1 BILLION in crypto on their balance sheet 🤯🤯🤯
— MASON VERSLUIS 🏆🔮 (@MasonVersluis) May 9, 2023
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