Stripe In Talks To Acquire Bridge For $1 Billion (techcrunch.com) 20
An anonymous reader quotes a report from TechCrunch: Stripe is in talks to acquire stablecoin platform Bridge for a whopping $1 billion, according to Forbes (paypalled). The talks are reportedly in advanced stages, although nothing has been finalized. Bridge, co-founded by Coinbase alumni Zach Abrams and Sean Yu, has built an API that helps companies accept stablecoins. The pair raised $58 million from investors like Index Ventures and Sequoia Capital, according to PitchBook. If the deal with Stripe goes through, it would be a huge jump from Bridge's $200 million valuation, as well as being Stripe's largest acquisition to date.
Wait, buying it with USD? (Score:3)
Why aren't they buying it with crypto?
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Forgers rarely accept payment in counterfeit money.
Why would they sell it for real money? (Score:3, Interesting)
I suppose the buyer wasn't prepared to part with any precious cryptocoins so the seller will have to accept worthless dollars instead. They really should have offered something more valuable than the company e.g. an NFT of the company.
Re: Why would they sell it for real money? (Score:2)
Theyâ(TM)re not really buying it with dollars either. You think they are getting a duffle bag of money? Stripe is valued at $65B but they do not have $65B, they do not even have the $1B in liquid assets. This will likely be a tender offer where you basically have investors buying out the stock. All this money is just on paper, not real value (you canâ(TM)t convert the billion dollars without tanking your own stocks).
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All this money is just on paper, not real value (you can’t convert the billion dollars without tanking your own stocks).
Lets say that last part again. A slightly different way.
The bank tells me every day I’m a billionaire. Except on the day I actually try and prove it by making the withdrawal. They tell me if I do, it’s suddenly worthless. Money I can set on fire and burn.
With “value” and “wealth” being defined like that in society, we wonder how we perpetually turn investing into a house of cards. Every damn time.
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This is financial illiteracy on display. You do not understand what money is, you do not understand what wealth is, and you have an imaginary concept of "value and wealth" that matches nothing that exists in reality.
What actually happens is that there is a concept of "wealth" that is partly objective and partly subjective. For example if you own a car, the objective part of wealth formation that car enables is that you have a car that can be used to transport people and things in certain amounts for certain
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The best financial wisdom I ever received was when my father reminded me that anything in this world is only as valuable as someone is willing to pay for it.
If you wish to see what financial illiteracy looks like, it’s the next stock market crash no one will see coming, but everyone expects. Let’s stop pretending any current explanation of value or wealth resembles sane objectiveness. History didn’t have quite the fiscal stupidity of today. Failure is now “too big” to fail
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That is correct, unless the bank has a real value such as gold bullion that you can trade for other services, your money is just a number on a piece of paper. That's why the government since abandoning the gold standard can promise you a million dollars just so you'll vote for them, they can just transfer digits in your bank account and lift everyone out of poverty tomorrow by just chunking a few trillions into the economy, however that would tank the value of said economy.
This is why banks are heavily inve
Well. (Score:5, Funny)
I have a Bridge to sell to you...
Is it (Score:3)
the one in Brooklyn? I hope not, cause I was promised a good deal on it.
Pets.com (Score:3)
Must we do this fandango? (Score:2)
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Acquiring bridge? (Score:2)
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They'll paint stripes on it.
The Company Company, Inc. (Score:1)
Stripe. Bridge. “Index” Ventures. “Pitch”Book.
OK, I know. Quite off topic, but is it just me, or did creativity jump out the fucking window after the Verizon branding group dispersed?
Thats some stable marketing alright. Namesakes about as exciting as caffeine-free unflavored Mountain Dew.
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Namesakes about as exciting as caffeine-free unflavored Mountain Dew.
About as nauseating too.
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Also most of the good names are taken, eventually there won't be an original sounding name remaining for use. It's like IPv4 or stock symbols
Is this the same Stripe... (Score:2)
... that is refusing to pass on cost savings from a regulatory mandate in Canada to reduce Visa and Mastercard fees charged by those CC's to merchants?
Article here: Lower Visa and Mastercard fees for small business start this week, but Stripe plans to ignore Ottawa and keep the savings for itself [cfib-fcei.ca]
Someone might want to bring this up with whatever regulatory authority in the USA that oversees large-scale mergers/acquisitions, because "flaunting the law" isn't a good look.