Stripe’s $1.1bn Bridge deal is just the beginning for crypto buyouts. Here are other companies to watch

Stripe’s $1.1bn Bridge deal is just the beginning for crypto buyouts. Here are other companies to watch
Snapshot
Stripe co-founder John Collison, whose company has made a $1.1 billion foray into stablecoin payments with its latest acquisition. Illustration: Darren Joseph; Photo: Flickr
By
J. Wright, T. Craig
22 October 2024 at 15:08
  • Bridge acquisition shows traditional finance’s interest in stablecoins.
  • Crypto custodian Komainu announced a deal for Singaporean custody provider Propine Holdings.
  • Major crypto firms are contemplating going public soon, and Bitcoin mining M&A is a trend.

Payments giant Stripe acquired stablecoin startup Bridge for $1.1 billion — the largest crypto acquisition by a major fintech, according to Bernstein analysts.

“It’s hard to envision a more fundamentally disruptive challenge to the traditional banking system: payments at scale without the involvement of a bank,” analyst Eric Risley, managing partner at Architect Partners, said in a blog post about the deal.

And it’s just the beginning for crypto deals, as prices surge, and established companies in traditional finance look to integrate with blockchain technology.

Here’s all the important crypto deals to watch.

Stripe buys Bridge

As big as Stripe’s acquisition is, it’s about more than just this deal — it validates stablecoins as a primary use case for blockchain technology, Bernstein analysts said in a research note.

Bridge offers APIs that help developers to integrate stablecoin payments into their businesses, without the hassle of dealing with the underlying blockchain technology.

The company, backed by investors including Ribbit, Sequoia, and Haun Ventures, raised $58 million in funding rounds.

Stripe joins rival PayPal in looking to tap blockchain technology for more efficient payments. PayPal launched its own stablecoin last year.

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Komainu

Crypto custodian Komainu — founded in 2018 as a joint venture of Japanese banking giant Nomura, asset manager CoinShares, and wallet provider Ledger — announced today that it will buy Singaporean custody provider Propine Holdings.

If regulators approve the deal, Komainu gains a foothold in Singapore, a major hub for both crypto and traditional finance.

IPOs

Circle said in January it plans to list shares to the public in an initial offering, and may get a regulator nod as soon as this year.

Circle issues USDC, the second largest stablecoin after Tether.

The company tried to go public in 2022 with a special purpose acquisition company, but the deal fell through.

Kraken has been planning for years for a similar IPO move in 2025 amid a dispute with the Securities and Exchange Commission.

Fireblocks, which says it’s in no rush to IPO, may yet follow.

Fireblocks creates software for moving, storing, and issuing digital assets. Its customers and investors include banking giants like BNY Mellon and BNP Paribas.

Miners merge

The Bridge deal follows a trend in the Bitcoin mining industry. Several publicly-traded Bitcoin miners merged this year from stock buy-outs.

In June, Bitcoin miner CleanSpark bought rival miner Griid in a $155 million all-stock deal.

Then in August, Bitfarms acquired Stronghold Digital Mining for $125 million while fending off a takeover attempt by Riot Platforms.

Still, with Riot upping its ownership of Bitfarms to 20% last month, the miner takeover battles look set to continue.

Crypto market movers

  • Bitcoin has traded flat today and is trading at $67,196.
  • Ether fell somewhat in the last 24 hours and is at $2,635.

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