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PayPal planning purchase of cryptocurrency companies: Bloomberg
Posted on Friday, 23 October 2020 11:26
PayPal Holdings is planning acquisitions of cryptocurrency companies in a bid to expand its digital coins business, people familiar with the matter told Bloomberg.
According to the sources, the world’s largest online payment system provider is holding talks with businesses such as BitGo and could reach an agreement in the coming weeks.
There is no guarantee the discussions will lead to a deal and PayPal may decide to pursue other targets, the insiders noted, asking not to be identified as the situation is still private.
BitGo is a company that helps investors store Bitcoin securely and is the only business that has focused exclusively on serving institutional clients since 2013.
It was not made clear by Bloomberg’s sources how much PayPal will pay for the company, although the news provider did cite a report by PitchBook that the target raised USD 58.50 million at a USD 170.00 million valuation in 2018.
BitGo offers digital wallets that require signatures for transactions.
Earlier this week, PayPal announced its customers can buy, sell and hold cryptocurrencies, including Bitcoin, Ether and Litecoin from digital wallets, as well as use the virtual money to shop at the 26.00 million merchants on its network.
The payments company posted revenue of USD 9.88 billion in the six months ended 30th June 2020, compared to USD 8.43 billion in the corresponding period of 2019.
Net income totalled USD 1.61 billion in H1 2020 (H1 2019: USD 1.49 billion).
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 222 deals targeting financial transactions processing, reserve, and clearinghouse activities announced worldwide in 2020 to date.
In the largest of these, Nexi has agreed to acquire Italy’s SIA for EUR 4.56 billion.
Nexi, Comercia Global Payments Entidad de Pago, Centrum Rozliczen Elektronicznych Polskie ePlatnosci and TransferWise, among others, have also been targeted in 2020 to date.
© Zephus Ltd