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Ark Invest completely got out of PayPal: Backs Cash App

Updated: Aug 31, 2024
Published: Apr 11, 2022
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Ark Invest, an American investment management firm based in St. Petersburg, has completely sold off all of its holdings in PayPal and now, beliefs in the supremacy of Cash App, a mobile payment service developed by Block, Inc, a firm headed by the former CEO of Twitter, Jack Dorsey. 

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Ark Invest interested in Cash App

Cathie Woods talked about the move in her recent interview with CNBC wherein she confirmed that Ark Invest has completely sold off the holdings in PayPal. She said that the payments firm might still be a winner in the fintech industry but the more promising investment lies in Cash App. She further pointed out that the organic growth of Cash App is a major reason why believes in the payment service provider, "especially when it comes to Bitcoin.

Cathie Woods talked about Venmo, an American mobile payment service founded in 2009 and owned by PayPal since 2012, which is the direct competitor of Cash App. She said that Venmo might've to integrate Bitcoin payments but it is a "follower of Cash App" and pointed out that Ark Invest is interested in the comprehensive approach that Cash App has towards cryptocurrencies. 

We tend to put our bets on who we believe will be the winners… As we consolidated our portfolios during a risk-off period, we chose Block over PayPal.

Cash App's performance

Cash App has seen a huge growth in 2020-21 as we even noted that the mobile payments app made record growth in each quart in 2020. However, it is also a fact that the application doesn't plan on providing services for cryptocurrencies other than Bitcoin, which at the time of writing is trading at a price of $42K. 

Cathie Woods also once again pointed out that when Ark Invest was consolidating its portfolio last year, they decided to make major changes and withdrew PayPal holdings because of higher chances of innovation. 

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