At the Bitcoin 2022 conference, Cathie Wood, CEO of Ark Invest, claimed that she favours Block’s Cash App over PayPal’s Venmo service. Wood stated that her investment firm has sold all of its PayPal assets in order to fully support Cash App.
She selected Cash App over Venmo because she thought the payment network had maintained an organic development plan, as opposed to Venmo’s “top-down” and rushed strategy to Bitcoin.
Customers got Cash App services by using its balances to buy and sell Bitcoin, starting in early 2018. Users of the Cash App may utilise the Lightning Network to perform transactions that are faster, more energy-efficient, and less expensive.
As per Ark Invest’s most recent financial report, bitcoin transactions generated $10 billion in revenue for the company. Since then, the firm has entirely focused on Bitcoin transactions. The amount reached $1.96 billion in the fourth quarter of 2021, a rise of 119%.
Block is Ark Invest’s sixth largest investment
The Cash App platform is owned by the company Block. Block is Ark Invest’s sixth-largest investment, accounting for over 1% of the company. Ark Invest dramatically increased its Block holdings by acquiring 225,937 shares in July 2021, after Dorsey revealed a new unit with a primary concentration on Bitcoin.
PayPal’s successful future
Ark Invest sold its PayPal stock and advertised Block as a competitor to PayPal’s business model. PayPal has been working hard to improve its crypto offerings, so this comment might be discouraging. Wood even expressed confidence in PayPal’s future success at the end of the session.
