Payments giant Stripe is edging closer to an initial public offering. However, it comes at a time when tech and crypto stocks are in a deep bear market.
On Jan. 26, the Wall Street Journal reported that “one of Silicon Valley’s most valuable startups,” is edging closer to a huge public-market debut.
Stripe executives plan to either take the Web3 firm public or allow employees to sell shares in private-market transactions within the next 12 months, it reported. Furthermore, the WSJ noted:
“A Stripe stock-market listing could help revive an initial public offering market that went dormant in 2022.”
However, Stripe has not escaped the bears over the past year. The firm laid off 14% of its workforce in November, adding to a long list of tech company cutbacks.
Crypto Stocks Outlook
Crypto stocks were hammered in 2022, along with the major tech stocks. Deepening recession fears and a gloomy macroeconomic outlook put the dampener on high-risk investments.
Several Bitcoin mining companies went public, and their stocks have been battered. Other big names, such as Coinbase, saw its stock (COIN) plummet to an all-time low. COIN prices slumped as low as $33 at the end of last year. This represents a fall of 90% from its all-time high, more than Bitcoin has declined during this bear market.
Mining firms such as Riot Blockchain, Marathon Digital, Hive, Hut8, and Bitfarms saw stocks slide during 2022. Furthermore, they have bounced off the bottom in a recent revival for crypto stocks, but many remain way down from their peak prices.
As the macroeconomic narrative changes and crypto markets recover, there could be buying opportunities for crypto stocks in 20213.
Ones to keep an eye on would include Coinbase (COIN), Block Inc. (SQ), PayPal (PYPL), MicroStrategy (MSTR), Marathon Digital (MARA), and Silvergate Capital (SI).
Bitcoin Halving Narrative
Any web3 company that is also involved in crypto could see stocks soaring later this year. Crypto markets are cyclical and have historically moved around Bitcoin halving events.
The next BTC halving is due in May 2024, and a large bull rally has followed in previous cycles. This would also be a boon for crypto stocks which will follow suit when markets recover.
At the time of writing, crypto markets were up 2.2% on the day, with a total capitalization of just over $1.1 trillion.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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