Ark Invest’s CEO belief for Cash App
When asked about her preferred payment method, Cathie Wood, CEO of Ark Invest, said that she preferred Block’s Cash App over PayPal’s Venmo at Bitcoin 2022.
CNBC interviewed Wood, who said that the investment company had liquidated all of its PayPal assets in order to completely fund Cash App’s development.
“We prefer to place our bets on the people we anticipate will come out on top,” Wood said. As we consolidate our investments during a risk-off phase, we picked Block over PayPal as a payment method.
Her rationale for investing heavily in Cash App was based on the notion that the payment network had followed an organic development plan, as opposed to Venmo’s “top-down” and frenzied approach to Bitcoin, which she deemed superior.
Cash App joined the cryptocurrency fight as early as 2018, letting customers to utilize their balances to purchase and sell Bitcoin.
Since then, the firm has narrowed its focus to exclusively facilitating Bitcoin transactions, which accounted for $10 billion in revenue in the company’s most recent quarterly report.
According to data from the fourth quarter of 2021, the figure amounted at $1.96 billion, representing an astonishing increase of 119 percent.
Cash App makes advantage of the Lightning Network, which enables its customers to conduct transactions that are quicker, more energy-efficient, and less expensive.
The platform’s parent firm, Square, has changed its name to Block as a statement of its intention to limit its attention to blockchain technology and related technologies.
Block’s CEO, Jack Dorsey, resigned from the board of directors of Twitter, in what has been interpreted as a move to avoid distractions in order to go all-in on Bitcoin.
When it comes to holdings, Block is sixth on Ark Invest’s list, with the fund owning around 1 percent of the business.
As part of its ongoing investment in Block, Ark Invest made a major acquisition of 225,937 shares in July 2021 after the announcement of a new division with a “main emphasis on Bitcoin” by Block CEO Jack Dorsey.