Jack Dorsey’s payments company Square has been a first-mover when it comes to bitcoin. Not only did Square enable bitcoin payments on its Cash App, but the company recently announced that it was purchasing $50 million worth of BTC for its balance sheet. Dorsey’s company has left rival PayPal in the dust when it comes to bitcoin.
Andy Edstrom, author of “Why Buy Bitcoin” and wealth manager at WESCAP, pointed out this dynamic on Twitter, saying that Square’s stock has been crushing shares of PayPal. He pointed out that a key difference between the two companies is Square’s decision to embrace bitcoin.
SponsoredEdstrom, who also describes himself as a “hard money enthusiast,” noted that blockchain pioneer Wences Casares, who was appointed to the PayPal board in 2016, is no longer listed on the company’s website as a member. If he’s off the board, that could be telling, according to Edstrom, who pointed out,
“Similar fact pattern to when David Marcus left Coinbase board due to conflict of interest. Facebook was about to launch a crypto that might compete with Coinbase. Wences still has Xapo so could be deemed to compete with PayPal once PayPal launches #Bitcoin product.”
Square stock is crushing PayPal stock. Square does #Bitcoin. PayPal doesn't. Wences seems to have left the PayPal board (he's missing from website Board listing). PayPal #Bitcoin service imminent?
— Andy Edstrom (@edstromandrew) October 10, 2020
Below is a comparison of how Square’s stock has performed vs. PayPal’s stock over the past three months.
‘Reading the Tea Leaves’
Galaxy Digital CEO Mike Novogratz also chimed in. He supports the theory and suggested that not only is PayPal’s move into bitcoin coming but “it will be the biggest news for BTC in 2020” in what has already been a heavy news cycle for the top cryptocurrency.
It’s coming and will be the biggest news for $BTC in 2020. And it’s been a big news year. Just reading tea leaves here. https://t.co/kTJArCdfxY
— Mike Novogratz (@novogratz) October 11, 2020
PayPal & Bitcoin
PayPal isn’t a complete stranger to bitcoin. They already have partnerships in place with cryptocurrency exchanges such as Coinbase, in which users can make instant withdrawals. But Square has been light years ahead as bitcoin sales fueled sales in its Cash App quarter-after-quarter.
Investors have celebrated Square’s stock as it moved to add more than 4,700 bitcoins to its balance sheet. Now with the bitcoin price barreling toward the $12,000 level once again, PayPal might not want to be left eating Square’s dust any longer.
