Read ARK’s corresponding blog with further explanation of our assumptions and thoughts on Square here: https://ark-invest.com/analyst-research/square-valuation. Intentionally, we have not incorporated the potential for Square’s international business, an important call option. If primary and secondary users each were to monetize at 30% instead of 20%, its price target would approach $500, delivering a 26% compound annual rate of return during the five years ended December 2025. While credit cards have commoditized during the last ten years, Square has focused on enabling businesses to grow with a suite of software services and access to working capital. Likewise, Square Capital originations should double from 2% of GPV to 4%. While ARK’s current assessment of the subject company may be positive, please note that it may be necessary for ARK to liquidate or reduce position sizes prior to the company attaining any indicated valuation prices due to a variety of conditions including, but not limited to, client specific guidelines, changing market conditions, investor activity, fundamental changes in the company’s business model and competitive landscape, headline risk, and government/regulatory activity. Past performance is no guarantee of future results. I recently discovered Cathie Wood and ARK Invest and have come away very impressed with their ETFs. Furthermore, Square could use the Lightning Network, a second layer application on top of Bitcoin, to disintermediate third parties in transactions between and among Cash App users and Square sellers. As described in our previous white paper, Cash App’s P2P payments network lowers customer acquisition costs and increases retention rates. All content is original and has been researched and produced by ARK Investment Management LLC (“ARK”) unless otherwise stated herein. Professional money management is not suitable for all investors. The content is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect to any products or services for any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. Ultimately, we believe that Cash App will offer a better and more personalized user experience at a much lower cost than traditional banks. The projected share price changes substantially dependent on Cash App’s monetization level. The ARK Fintech Innovation ETF (NYSEARCA: ARKF) is a prime example of an ETF with a slew of tailwinds and many of those are derived from two marquee holdings: Square … Current and Historical Performance Performance for ARK Innovation ETF on Yahoo Finance. ARK Investment Management LLC focuses solely on investing in disruptive innovation. We delineate other potential growth catalysts in the last section of this piece. In other words, consumers have committed to 1.8 financial products or services on average. In Australia, for example, large banks have left rural areas, giving Square an opportunity to partner with smaller institutions and fill in the void left behind. Today, Cash App offers users banking services such as direct deposit, debit cards, ATM access, a platform to invest in equities and bitcoin, a rewards program, free transfers from the US to the UK, and integration with Square sellers. Catherine Wood, the founder of ARK Investment (Ark Invest), believes that many more big firms will be exploring Bitcoin in the coming days. Forecasts are inherently limited and cannot be relied upon. Cash App also is leveraging innovative marketing strategies to attract new customers across all demographic groups in the US. Today, ARK identifies five major innovation platforms evolving at the same time and transforming industries. In 2025, Cash App monetizes 20% of its estimated 75 million monthly active users (MAUs), its “primary” MAUs, at the revenue per digital user generated at JP Morgan Chase, Bank of America and Wells Fargo on average in 2019. Moreover, to avoid unpleasant interactions months after splitting the costs after a night on the town, family and friends can lure users back to Venmo, Cash App, and other P2P platforms when requesting long delayed repayments. 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