Business & Financecomparison
Fireblocks says it is not in talks to be bought by Visa, denying a reported $2.5 billion deal
A reported price of $2.5 billion would be less than a third of the crypto custody firm's 2022 valuation, and the company says the reports are not true at present.
This article is general information, not financial, investment or insurance advice. Check the details with a qualified adviser before you decide.
A denial against a reported deal
Fireblocks says it is not in talks to be bought by Visa, which matters to the banks, crypto exchanges and payment companies that use its software. [1][2] Axios reported that Visa was in late-stage talks to acquire the company for around $2.5 billion. [2]
A Fireblocks spokesperson said the reports were news to the company and not true at the present time. [2] Visa has not confirmed the talks, and it did not respond to requests for comment. [1][3]
Coinbase enters the story
Anonymous sources told CoinDesk that Coinbase was also in the frame to buy Fireblocks. [3] After the Axios story was published, Coinbase denied it was involved in a possible transaction. [3]
Smoke has circulated for three or four weeks about a potential sale of Fireblocks. [3] The denials from Fireblocks and Coinbase address specific reports, and Visa has said nothing on the matter. [1][3]
The price against the 2022 valuation
Fireblocks raised $550 million at an $8 billion valuation in January 2022. [2] Another account of that round puts the valuation at more than $8 billion. [1]
A $2.5 billion sale would be less than a third of that 2022 valuation. [1]
What Fireblocks sells
Fireblocks is not a consumer wallet. It sells infrastructure that businesses use to move and hold digital assets. [1] Its software lets banks, crypto exchanges and payment companies securely hold and move those assets. [2]
The company specializes in crypto custody using multi-party computation (MPC) and related key-sharding technologies. [3] It says it streamlines stablecoin payments, settlement, custody, tokenization and trading operations. [1]
Why Visa would be a logical suitor, and the neutrality question
Visa and Fireblocks, alongside Cross River, have taken stablecoin rails live for commercial use. [1] Visa launched its own stablecoin platform in July. [2] Mastercard completed its acquisition of stablecoin infrastructure firm BVNK in August. [2]
Some Fireblocks customers compete with Visa. That raises the question of whether a Visa-owned Fireblocks would remain a neutral technology provider. [2]
What this means for Fireblocks customers
If you use Fireblocks, the company's position is that it is not in talks to be bought by Visa. [1] Its spokesperson said the reports were not true at the present time. [2]
Visa has not confirmed any talks, so the Axios report of a roughly $2.5 billion deal remains a report. [1][2] If you compete with Visa, the neutrality question applies to you, because some Fireblocks customers do. [2]
Sources
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