The fintech company PayPal has recently disclosed its cryptocurrency holdings in a quarterly report filed with the Securities and Exchange Commission (SEC).
Claiming a combined $943 million in cryptocurrency assets as of March 31, 2023, the filing shows a 56% increase from the company’s previous quarter, in which PayPal disclosed $604 million.
PayPal’s total financial liabilities for this quarter were $1.2 billion, with crypto assets accounting for 77.9% – more than 10% of Q4 2022 liabilities.
According to the report, PayPal considers its crypto assets a “safeguard liability” due to the “unique risks associated with cryptocurrencies.” The disclosure also indicates that the specific cryptocurrencies held by the company remain unchanged from the last quarter:
“We allow our customers in certain markets to buy, hold, sell, receive, and send certain cryptocurrencies, as well as use proceeds from cryptocurrency sales 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. PayPal acknowledges that this places a liability on customers in the event third parties are unable to process transactions—a claim that has carried over since last quarter’s filing—however, the filing also indicates that there has not yet been any failure of this guy:
“As of March 31, 2023, the Company has not incurred any protection loss events and therefore the crypto asset protection liability and the corresponding protection asset were recorded at the same value.”
The Q1 2023 cryptocurrency asset breakdown for PayPal includes $499 million in Bitcoin (up from $291 million in December), $362 million in Ether (up from $250 million), and $82 million comprised of Bitcoin. Cash and Litecoin (versus $63 million).
PayPal’s profitability also increased in the first quarter. Based on generally accepted accounting principles, the company earned 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 were $1.17, up from $0.88 of the first quarter of 2022.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.