Crypto mergers expected to rise under Trump; Tether and Stripe eye acquisitions
2025 to be a much more successful year for deal-making
A number of merger consultants and venture capitalists surveyed by Bloomberg believe that during Donald Trump's presidency, the number of mergers and acquisitions in the cryptocurrency sector will increase significantly.
“With Trump in the White House, we expect 2025 to be a much more successful year for deal-making,” said Casper Johansen, head of digital asset consulting at Spartan Group.
According to Haseeb Qureshi, managing partner at Dragonfly Capital, Trump’s victory and the change in leadership at the U.S. Securities and Exchange Commission (SEC) will ease concerns over deal-blocking, business bans, or legal action from the SEC.
According to CryptoSlate, crypto firms that have already announced plans to make deals include the brokerage firm FalconX and Tether. Specifically, Tether announced in June that it plans to invest $1 billion in acquiring new businesses over the next 12 months.
Additionally, last month, the fintech company Stripe Inc., valued at around $70 billion, announced plans to acquire the stablecoin startup Bridge for approximately $1.1 billion.
The main obstacle – overvaluation
Some investment bankers specializing in digital assets have stated that they expect mergers and acquisitions to be used more frequently to accelerate expansion plans during Trump’s second term.
However, even with relaxed SEC oversight, there are several obstacles to increased activity in this sector. The primary issue is the differing valuations of companies by sellers and buyers.
Most crypto companies raised funding during a bull market, which ended in 2022. This means that their latest funding valuations are much higher than current market valuations, making it challenging for buyers and sellers to reach agreements.
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