Payment platform Paypal published its 2023 first quarter earning report and it shows that it had a 56% increase in its crypto holding.
The quarterly report filed to the United States Securities and Exchange Commission (SEC) indicated that as of March 31st 2023, the fintech firm’s crypto bag holds a total of $943 million. Compared to Q4 2022 when Paypal reported $604 million in cryptocurrencies, this is a significant increase of more than $300 million.
These crypto assets consist of $499 million in Bitcoin (BTC), another $362 million in Ethereum (ETH), and $82 million in Bitcoin Cash (BCH) and Litecoin (LTC). Looking back at the previous quarter, Paypal’s BTC holding was only $291 million, ETH was $250 million while BCH and LTC were $63 million.
The fintech’s total financial liabilities were reported to be $1.2 billion, with crypto assets making up 77.9% of it.
Crypto Assets are Safeguarding Liability: Paypal
Notably, Paypal has made considerable efforts to expand its crypto service since it launched two years ago.
In December, the payment platform extended its crypto offering to Luxembourg giving people in the region access to buy, trade, and hold BTC, LTC, ETH, and BCH. While the firm seems to have made tremendous growth in its crypto assets, it only considers it a ‘safeguarding liability’.
According to Paypal, this is because of the risks associated with digital assets. Also, these crypto assets are not directly held by Paypal but are distributed to third-party companies that serve as crypto custodians.
Paypal Maintains Specific Crypto Assets
It is worth noting that Paypal has not diversified its crypto holding from what it was the previous quarter. Per a Paypal published statement,
“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…”
Paypal Beats Analysts Prediction
Additionally, Paypal performed better than analysts estimated in terms of its earnings per share.
Instead of the expected $0.98, the company reported its earnings per share at $1.17. The company’s revenue was predicted to also amount to $6.2 billion, however, Paypal ended up with $7.04 billion.