Key Takeaways
- Crypto mergers are expected to surge under Trump's presidency.
- Key regulatory changes may facilitate crypto-sector dealmaking.
- Valuation disagreements could still limit some acquisitions.
With Donald Trump set to re-enter the White House, the crypto sector is anticipating a significant increase in mergers and acquisitions.
Trump’s campaign promise to fire SEC Chair Gary Gensler has raised hopes of more favorable regulatory conditions for digital assets, according to Bloomberg.
Casper Johansen, head of The Spartan Group’s digital asset advisory, remarked:
With Trump in the White House, we expect 2025 to be a much stronger year for dealmaking.
Market reaction
Dragonfly Capital’s Managing Partner Haseeb Qureshi noted that Trump’s return, along with anticipated changes in SEC leadership, should ease fears of regulatory interference, allowing more CEOs to pursue acquisitions to expand operations.
Firms like Tether and FalconX have signaled intentions to move forward with new deals, with Tether committing $1 billion over the next year.
Stripe Inc., valued at $70 billion, recently announced plans to acquire stablecoin startup Bridge for $1.1 billion.
Challenges
Despite optimism, industry insiders recognize hurdles in reaching agreement on valuations.
Many firms raised funds during the 2022 bull run, resulting in elevated valuations that no longer match current market conditions. Valuation disputes remain a key reason deals fall through, but Qureshi remains hopeful, stating:
All things considered, I expect the next four years to be much more favorable than the last four.
