PayPal has revealed that it holds around $1 billion in cryptocurrencies on its balance sheet, mainly consisting of BTC and ETH.
in its latest quarter financial performance reportThe financial payments giant revealed that it holds $943 million worth of customer assets held in bitcoin, ether, bitcoin cash and litecoin, marking an increase of $339 million from the end of last year.
PayPal reported $1.2 billion in cumulative financial liabilities for the first quarter of the year, which accounted for 77.9% of crypto assets – more than 10% from liabilities for the fourth quarter of 2022.
“We keep internal records of our customers’ crypto assets, including the amount and type of crypto assets owned by each of our customers,” PayPal said in its 10-Q filing.
The company noted that it does not hold cryptocurrencies on its balance sheet outside of its clients’ assets.
According to the report, PayPal considers its crypto assets to be a “security liability” due to the “unique risks associated with cryptocurrencies.”
Since giving US users the ability to buy, sell and hold crypto in October 2020, the payments provider has introduced a number of crypto features to its customers over the years.
In July last year the company Active Customer transfers to third party wallets and exchanges.
it’s also roll Crypto transfers on mobile payment service app Venmo allow customers to transfer holdings to external wallets and transfer crypto to others through the app.
In addition, the company acquired the cryptocurrency security firm Curve in March 2021.
In late 2021, private blockchain software technology company and developer of popular crypto wallet MetaMask ConsenSys Integrated A feature that allows users to buy Ether via PayPal to fund their wallet.
PayPal’s profitability rises in the first quarter of 2023
PayPal’s profit has also increased in the first quarter of the year.
The company disclosed earnings per share of $0.70, compared to $0.43 in the first quarter of 2022, based on generally accepted accounting principles (GAAP).
On a non-GAAP basis, PayPal’s earnings per share were $1.17, up from $0.88 in the same period.
Overall, however, PayPal’s growth slowed over the past year as countries around the world lifted restrictions and macroeconomic conditions worsened.
PayPal also had to take some measures to reduce costs amid the current global market flux.
Earlier this year, the company Said It has reduced its workforce by 7%, or about 2,000 employees, as part of its ongoing efforts to “consolidate” and “reorganize” in a “challenging macro-economic environment”.
Meanwhile, the company warned that its adjusted operating margin would not grow as fast as it had previously projected, even after spending on its platform jumped more than expected in the first quarter. .
The news caused the company’s stock to crash, falling 12.73% on the latest trading day on Tuesday. The company’s shares are down 7.46% YTD.