Ark Invest sold all of its PayPal stock and is betting heavily on Cash App’s long-term viability. At the recent Bitcoin 2022 Conference in Miami, Cathie Wood, the founder of Ark Invest, explained why the firm opted to liquidate its PayPal assets. Wood went on to remark that her company’s strong belief in Cash App stems from “organic user development,” as she sees it.
Ark Invest sold all of its PayPal stock and is betting heavily on Cash App’s long-term viability
Cathie Wood, the founder of crypto investment firm Ark Invest, has sold all of the company’s PayPal assets in favor of the Cash App payment system, which uses the Bitcoin (BTC) Lightning Network. During the Miami Bitcoin 2022 conference, which wrapped on Saturday, Wood discussed her company’s decision.
The Lightning Network (LN) is a Bitcoin layer-2 technology that enables transactions to be completed faster and for less money. Venmo is a payment software operated by PayPal, a financial technology company, that competes directly with Block’s (formerly Square) Cash App.
Wood told CNBC on Friday that she dropped PayPal in favor of Cash App because the latter’s approach to digital asset wallet integration is more comprehensive. Despite the fact that Venmo now accepts Bitcoin, she maintains it is still a “Cash App follower.”
“We like to bet on someone we think will win […] To combine our holdings within a risk-free time frame, we chose Block over PayPal.”
In contrast to Venmo’s “top-down strategy,” Wood explained that her company’s confidence in Cash App comes from “organically-driven user growth.”
Venmo has 70 million users and $850 million in earnings, according to app tracker Business of Apps, compared to 44 million and $2.03 billion in profit for Cash App in 2021. Another factor in Ark’s evaluation of the two companies could be the stark contrast in their ability to create net profits.
Miles Suter, the company’s Bitcoin product director, said on Thursday that American users will be able to automatically invest a portion of their direct transfers into Bitcoin as part of Ark Invest’s upbeat attitude toward Cash App. Wood expressed his conviction in Bitcoin in the interview, predicting that it may reach $1 million by 2030.
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