It has been well-known for some time that Square and Voyager Digital have been in talks to merge. After a few months of secret talks, the two companies have announced a deal that will see Square acquire Voyager Digital for $175 million. “Voyager has always been Square’s dream,” said Keith Rabois, Square’s CTO. “We’ve been chasing them for years and years.”
In a small corner of the cryptocurrency world, Voyager Digital and Square are merging to create a new company that will specialize in delivering a new type of digital currency to large-scale merchants and institutions.
Square and Voyager Digital are two of the biggest names in the industry. Both companies started as simple bitcoin payment processors before extending their services, and today they are both involved in a number of Bitcoin related ventures. Today both companies announced a few interesting acquisitions as they continue to expand.
As businesses join forces via a continuous stream of acquisitions and mergers, the terrain around financial technology (FinTech) continues to clear. This has been emphasized in recent days, with different instances along the road.
Coinify is acquired by Voyager Digital.
Voyager Digital, a publicly listed company, has announced the acquisition of cryptocurrency platform Coinify ApS. Voyager will be able to utilize Coinify’s current infrastructure and user base to grow across Europe, Asia, and the Americas as a result of this $84 million USD deal.
Voyager’s crypto-based operations will profit from this expansion, as it will be able to enable clients to “make payments straight from their digital asset accounts.”
“As the adoption of cryptocurrency payments grows, the acquisition of Coinify adds a global payment infrastructure to Voyager’s digital asset ecosystem, providing a fast, easy, and secure way for our rapidly growing customer base of over 1.75 million users to make payments from their Voyager accounts,” says Stephen Ehrlich, CEO of Voyager.
This isn’t the first time Voyager has made a purchase to increase the importance of crypto in its operations. In 2020, the firm purchased the Ethos blockchain and its related coins and renamed them.
Afterpay is acquired by Square.
Square is poised to buy Afterpay for $29 million in a transaction that will be announced soon. Square will get instant access to a well-positioned, versatile platform that includes features like “purchase now, pay later.” This feature will be incorporated into Square’s current Cash App product line in the near future. “Brings together two of the fastest growing global fintech firms to promote common goal of economic empowerment and financial inclusion,” according to Square.
Not only will the Cash App’s current client base benefit from this connection, but so will Afterpay’s. “Afterpay users will benefit from Cash App’s financial features, including money transfer, stock and Bitcoin purchases, Cash Boost, and more,” according to Square. This is one of the three main reasons Square claims to have bought Afterpay.
- Enhance the ecosystems of both the seller and the cash app.
- Boost Afterpay’s value, distinctiveness, and scalability.
- Significant revenue synergy possibilities can help you achieve long-term success.
Square’s obsession with Bitcoin can be traced back to the company’s most recent Q2 results. Square was able to convert a $200 million increase in Bitcoin-based sales into $55 million in gross profit during the same time period from 2020.
MoneyGram is a service provided by the Steller Developmental Foundation.
Unlike the other purchases, which were basically done-deals, this one is presently more speculative. MoneyGram is thought to be in discussions with the Steller Developmental Foundation (SDF) for a possible purchase, according to a recent Bloomberg article.
Despite the uncertainties surrounding this possible transaction, markets seemed to react positively, with MoneyGram shares surging soon after the rumors surfaced.
MoneyGram, in particular, has been connected to takeover discussions for years, going back to early 2018. At the time, the US authorities put a stop to Ant Financial’s purchase of MoneyGram. The government justified its involvement by claiming national security concerns. This transaction is said to have been worth about $1.2 billion at the time.
Then again, it doesn’t take a lot for the crypto world to go from boom to bust. In the past two years, Ethereum has seen a multi-billion dollar price drop, while coins like BitConnect have collapsed almost instantly. Such volatility is a key part of the game, and if you haven’t been paying attention to your portfolio lately, you’re in the same boat as the majority of investors.. Read more about voyager digital investor relations and let us know what you think.
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