PayPal’s crypto holdings increased by 56% in Q1 2023 to nearly $1B
Financial technology company PayPal recently disclosed its cryptocurrency holdings in a quarterly report filing to the Securities and Exchange Commision (SEC).
Claiming a combined total of $943 million in cryptocurrency assets as of March 31, 2023, the filing shows a 56% increase over the company’s previous quarter where PayPal disclosed $604 million.
PayPal's reported total financial liabilities for this quarter were $1.2 billion, with crypto assets making up 77.9% — up more than 10% from 2022’s reported fourth quarter liabilities.
Related: PayPal crypto partner Paxos raises $300M
According to the report, PayPal considers its crypto assets a “safeguarding liability” due to the the “unique risks associated with cryptocurrencies.” The disclosure also indicates that the specific cryptocurrencies held by the company remain unchanged since last quarter:
Custody of the assets PayPal holds on behalf of its customers remains limited to third-party holding companies. PayPal recognizes that this presents a liability for customers in the event that third parties are unable to process transactions — a statement carried over from last quarter’s filing — however, the filing also indicates that no such fault has yet occurred:
The Q1 2023 cryptocurrency asset breakdown for PayPal includes $499 million in Bitcoin (up from December’s $291 million), $362 million in Ether (up from $250 million), and $82 million composed of Bitcoin Cash and Litecoin (up from $63 million).
PayPal's profitability also increased in the first quarter. On a GAAP basis, the company disclosed per-share earnings of $0.70, up from $0.43 in the first quarter of 2022. On a non-GAAP basis, PayPal's per-share earnings were $1.17, up from $0.88 in the first quarter of
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