Bitcoin Updates: PayPal Offers $1.3 Million in Bitcoin Prizes to Encourage Widespread Crypto Use

PayPal has introduced a

sweepstakes for users in the United States, featuring a total prize pool of $1.386 million in Bitcoin and weekly grand prizes of $100,000. Running until December 21, the event allows participants to enter by purchasing select cryptocurrencies on the platform or by submitting mail-in entries, with 1,008 winners to be chosen across five weekly drawings . This campaign represents PayPal’s latest effort to engage with the crypto community, aiming to encourage adoption during the holiday period by combining rewards with its growing digital asset offerings.

The sweepstakes is designed to be accessible, allowing each user up to 10 entries per week through eligible transactions involving Bitcoin (BTC),

(ETH), (SOL), (LTC), (LINK), and (BCH). Those who prefer not to make transactions can participate by mailing in handwritten entries with their personal information to a specified address. Winners are picked at random, with prizes distributed in three categories: six $100,000 BTC awards, 30 $10,000 BTC prizes, and 972 $500 BTC rewards . Verification requirements differ by prize level, with larger prizes requiring additional eligibility checks.

This sweepstakes is part of PayPal’s broader push to make digital assets more mainstream, especially as it incorporates crypto payments and stablecoins into its services. Notably, transactions involving PYUSD are not eligible for entry, highlighting regulatory limitations on stablecoin use.

PayPal entered the crypto space in 2020 by enabling users to buy, hold, and sell major cryptocurrencies, and later launched its own stablecoin, PYUSD. The sweepstakes reflects a wider movement among financial firms to use incentives to promote widespread crypto adoption, particularly during peak consumer spending seasons.

The promotion has faced skepticism, with some users initially doubting its authenticity due to the substantial prizes and the frequency of crypto-related scams.

has since verified the legitimacy of the sweepstakes, stressing its adherence to U.S. sweepstakes regulations and the inclusion of a mail-in entry method to increase accessibility .

Winners should be aware of tax obligations, as U.S. law requires all prize earnings to be reported to the Internal Revenue Service. This is consistent with the growing regulatory focus on crypto transactions, which are increasingly treated as taxable events. Despite these challenges, PayPal’s campaign underscores the expanding overlap between traditional finance and digital assets, as major platforms compete to attract new users through engaging, game-like promotions.