Charlie Gasparino on WeWork business model changes
Office space provider WeWork announced it will begin accepting payments for select cryptocurrencies and partner with Coinbase and Bitpay to facilitate transactions.
WEWORK’S NEW STOCK-LISTING PLAN HAS ECHOES OF ITS PAST
Through its partnership with Bitpay, a cryptocurrency payment service, WeWork will accept Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Paxos (PAX) and several other cryptocurrencies as payment for its offerings. In addition, the company said it will hold the digital currencies on its balance sheet.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COIN | COINBASE GLOBAL | 316.38 | -16.62 | -4.99% |
WeWork will pay landlords and third-party partners where applicable through cryptocurrency exchange operator Coinbase. Coinbase, which recently launched a historic direct listing on the Nasdaq, will also be the first WeWork member to pay for its membership using cryptocurrency.
“WeWork’s strength is in our ability to evolve and best meet the diverse needs of our members around the world. As our member base continues to grow in the fintech sector, so will our ability to adapt to their needs and service a new economy,” WeWork CEO Sandeep Mathrani said in a statement. “WeWork has always been at the forefront of innovative technologies, finding new ways to support our members. It only makes sense for us to expand on the optionality we provide by adding cryptocurrency as an accepted form of payment for our members.”
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WeWork joins a growing list of companies that have entered the cryptocurrency space, including Tesla, Visa, Mastercard and Bank of NY Mellon.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA, INC. | 715.83 | +1.20 | +0.17% |
| V | VISA, INC. | 222.29 | -3.52 | -1.56% |
| M | MACY’S, INC. | 15.61 | -1.21 | -7.17% |
| BK | THE BANK OF NEW YORK MELLON CORP. | 47.00 | +0.20 | +0.43% |
| PYPL | PAYPAL HOLDINGS, INC. | 263.20 | -4.71 | -1.76% |
Earlier Tuesday, mobile payment service Venmo announced it would begin allowing customers to buy, sell and hold cryptocurrencies, including bitcoin, bitcoin cash, Ethereum and Litecoin by using traditional cash from their accounts. Venmo joins big brother PayPal, which launched its own cryptocurrency service on March 30 called Checkout with Crypto.
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WeWork’s move comes as the company attempts to launch a new initial public offering after a failed attempt back in 2019.
WeWork, which is backed by SoftBank, has reportedly agreed to go public at a valuation of $9 billion including debt, through a merger with a special purpose acquisition company (SPAC). SoftBank said it would retain a majority stake in the company following the merger.
Bitcoin prices are hovering near $56,000 Tuesday after plunging as much as 14% to $51,541 on Sunday and wiping out the majority of its gains from the previous week, which led to a record-high value of $63,200 as tracked by Coindesk.
