🚀 Stripe's Big Bet on Crypto
Stripe agreed to buy Bridge Network for $1.1B, marking its largest acquisition. The deal represents a 200% valuation boost for Bridge since August 2024, when it was valued at $350M. This is a significant win for venture investors like Index Ventures and Haun Ventures, who will see a tripling of their investment. The acquisition comes during a challenging time for the tech sector, where IPOs have been sparse, making this deal particularly notable.
💰 Key Investors Reap Rewards
Index Ventures and Haun Ventures have reason to celebrate. Chris Ahn, a former Index partner and current Haun partner, led the initial investment in Bridge back in 2022. Ahn famously visited the founders in Montana to seal the deal. “Nobody else had flown out to see them in person,” Ahn told CNBC. The August 2024 financing round, with a valuation of $350M, included Sequoia and Coinbase Ventures. Now, with Stripe’s acquisition, these investors see a substantial return.
🌐 Bridge Network’s Role in Crypto Payments
Bridge Network has positioned itself as a key player in stablecoin transactions. The company specializes in making it easier for businesses to accept stablecoin payments, eliminating technical hurdles. Its customers include Coinbase and SpaceX. Stripe's acquisition signals its commitment to stablecoin technology, with Patrick Collison stating, "Stripe is serious about stablecoins and crypto." The deal aims to leverage Bridge’s infrastructure to serve a growing market, valued at around $160B.
📉 Stripe’s Strategic Shift Amid Valuation Changes
Stripe, once valued at $95B in 2021, saw its valuation drop to $50B by 2023. It has since recovered to around $70B. The acquisition of Bridge aligns with Stripe’s strategy to expand its offerings while maintaining private control. Despite its size, Stripe has avoided going public, preferring to tap into private market funding. David Golden of Revolution Ventures noted, "The private markets have been so generous with providing capital and secondary liquidity." This strategic choice allows Stripe to reward shareholders without an IPO.
Will Stripe's move into stablecoins pay off in the long run?
