![]() ![]() The push for incorporating cryptocurrencies was a big reason why. There were 14.5 million new accounts formed, and payment volume was $20 billion higher than expected. In the first quarter of this year, PayPal saw revenue rise 29% year-over-year, and total payment volume jumped 50%. Their business model of collecting a small "toll" for every financial transaction processed should help PYPL expand its bottom line when it begins to apply its fees to crypto transactions in 2021. That's a massive figure that only makes Bitcoin more useful as a digital store of wealth thanks to the "network effect" (opens in new tab) – a concept PayPal understands well from when it was part of former parent company eBay ( EBAY (opens in new tab)).Īllowing users to buy and sell Bitcoin on its platform naturally opens up a new source of revenue for the company. If that 17% figure actually translates across all 392 million PayPal users worldwide, that indicates nearly 67 million people have started holding some amount of wealth in cryptocurrency. "Crypto functionality is now part of Top 5 finance apps," say Piper Sandler analysts Christopher Donat and Crispin Love, who rate PYPL at Buy. Investment firm and hedge fund Pantera Capital wrote in a letter to shareholders that "PayPal and (Square's Cash App) are already buying more than 100% of all newly-issued bitcoins." PayPal Holdings ( PYPL (opens in new tab), $288.12) announced in October a service that would allow users to hold Bitcoin, as well as the Ethereum, Bitcoin Cash and Litecoin cryptocurrencies.īefore the end of the year, Mizuho Securities survey of 380 users showed that, within roughly one month, 17% had already used PayPal to buy or sell the cryptocurrency. ![]() Return on equity – trailing 12 months (TTM): 29.4%.Quarterly earnings growth rate (year-over-year): 1,206%.They might not offer pure exposure to these technologies, but by embracing this growing space, these crypto stocks look poised to deliver additional growth in 2021 and beyond. Here are seven cryptocurrency stocks (and one fund) that can help traditional investors get at least exposure to this asset class. The answer? Stocks that leverage digital currencies, but also boast vibrant businesses that would make them worth buying anyway. "Cryptocurrency investing today is a bit like living in the early days of the 1850s gold rush, which involved more speculating than investing," says John LaForge, Head of Real Asset Strategy at Wells Fargo Investment Institute. In addition to not being able to buy it directly through many brokerage accounts yet, it might simply be too volatile for some. ![]() Since Bitcoin isn't recognized by the government as a cash equivalent, the position has to be repeatedly marked-to-market, causing companies to show big profits or losses depending on the digital currency's price swings.īitcoin might not be right for many investors. The past few months have seen an explosion of companies offering Bitcoin as payments, or even the rise of companies holding the cryptocurrency on their balance sheet rather than cash. The companies utilizing these technologies run the gamut, from traditional financial powerhouses looking to develop their own cryptos, to fintech firms looking to add Bitcoin functionality to their products, to other companies using blockchain to improve their operations. Cryptocurrencies and blockchain have been part of that transformation. ![]()
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