PayPal increased crypto assets on its balance sheet by 56% in the first quarter of 2023. Currently, the fintech giant has around $1 billion in cryptocurrencies.
According to the latest balance sheet, PayPal has increased its cryptocurrency holdings!
cryptocoin.com As we reported, PayPal recently disclosed its cryptocurrency holdings in a quarterly report to the United States Securities and Exchange Commission. The lion’s share of crypto assets held by Fintech are in BTC and ETH, with $499 million and $362 million, respectively. Meanwhile, cryptoassets have increased by more than 56% since Q4 of 2022.
The report, in which PayPal announced a total of $ 943 million in crypto assets as of March 31, 2023, points to a 56% increase compared to the previous quarter, when the company announced $ 604 million. Additionally, PayPal’s total financial liabilities reported for this quarter amount to $1.2 billion. Crypto assets account for 77.9% of this. This represents an increase of more than 10% over the reported fourth quarter liabilities of 2022.
Why does PayPal hold crypto assets?
According to the report, PayPal views crypto assets as an “obligation to protect.” He cites the “unique risks associated with cryptocurrencies” as the reason. The statement also states that the specific cryptocurrencies held by the company have not changed since last quarter. In this regard, the company draws attention to the following:
We allow our customers in certain markets to buy, hold, sell, receive and send certain cryptocurrencies, as well as use the proceeds from the sale of cryptocurrencies to pay for purchases at checkout. These cryptocurrencies consist of Bitcoin, Ethereum, Bitcoin Cash and Litecoin (our customers’ crypto assets).
The custody of assets that PayPal holds on behalf of its customers is limited to third-party holding companies. Additionally, PayPal recognizes that this creates an obligation for customers if third parties fail to process transactions. But the filing also shows that no such error has occurred yet. He makes the following statement about it:
As of March 31, 2023, the Company did not suffer any loss of protection events. Therefore, the crypto-asset protection obligation and the corresponding protection asset were recorded at the same value.
What cryptocurrencies are on the company’s balance sheet?
First quarter 2023 crypto asset allocation for PayPal, $499 million in Bitcoin (more than $291 million in December), $362 million in Ethereum (more than $250 million), and $82 million (more than $63 million) in Bitcoin Cash and Litecoin. contains.
Meanwhile, the company’s profitability also increased in the first quarter. Based on generally accepted accounting principles (GAAP), the company announced earnings per share of $0.70, up from $0.43 in the first quarter of 2022. On a non-GAAP basis, PayPal’s earnings per share increased from $0.88 in the first quarter of 2022 to $1.17.
Contact us to be instantly informed about the last minute developments.twitter‘in,Facebookin andInstagramFollow andTelegramAndYouTubejoin our channel!
For the continuation of the article, PayPal Published its Balance Sheet: There Are Loads of These Coins!