Cathie Wood, a star name in the world of investment, and the founder of Ark Investment, revealed that her company will be cutting off all of its PayPal stock holdings, and instead of turning to the crypto-friendly Cash App.
As the prominent CEO remarked when explaining her company’s choice to CNBC, Ark Investment has been consolidating its investment portfolio and sees much bigger growth potential in Cash App than in PayPal’s Venmo, on which ARK had previously focused.
“The way Cash App is growing organically as opposed to more of a top-down, it is going to be fired up now by Bitcoin. Venmo is accommodating Bitcoin as well, but it is more of a follower of the Cash App. So we tend to put our bets with who we believe will be the winners,” emphasized Wood.
Cash App Adds New Services
Last week, Block CEO Jack Dorsey unveiled new services for Cash App users, including automated investments into Bitcoin from deposit accounts, and Bitcoin transactions to external wallets via the Lightning Network.
Cash App was one of the first mainstream payment apps to turn to digital currencies, mainly Bitcoin, back in 2018. It had 44 million monthly active users in Q4 2021 and generated $12.3 billion in revenue within the past year — 81% of which came from Bitcoin.
Cash App has integrated the Lightning Network for free Bitcoin payments since the beginning.
“Block’s singular focus on Bitcoin is critical here. The second layer solution Lightning Network has been in test mode for years but it seems that it has become more robust now and is ready for prime time. I think this could be big. The number of channels on Lightning Network is going to explode”, Wood highlighted.