In a surprising twist to an already intriguing saga, Wormhole has entered the fray with a bold bid to acquire Stargate, one of the leading names in blockchain bridging services. On August 21, 2025, sources revealed that Wormhole aims to top LayerZero’s $110 million token-swap offer, urging the community to pause an imminent Snapshot vote to thoroughly evaluate this new proposition.
The Stakes in Play
Stargate isn’t just another player in the crypto ecosystem; it’s a heavyweight. Last month, the platform processed a staggering $4 billion in transactions and boasts a total value locked (TVL) of $345 million. Its treasury is no small change either, with $92 million held in stablecoins and ether, alongside $55 million in STG and other assets. Annual revenue hits the $2 million mark—a financial profile that has undoubtedly caught the eyes of potential suitors. This mirrors the trend seen in the stablecoin market, which has made crypto ramps increasingly attractive for mergers and acquisitions, as discussed in our recent article.
“Based on our initial review, we believe that STG holders deserve a more competitive process, and we are prepared to submit a meaningfully higher bid,” Wormhole’s proposal stated. It’s a sentiment likely to resonate with many STG holders who feel LayerZero’s offer may undervalue the bridge’s potential.
A Clash of Titans
This battle for Stargate is more than just a financial tug-of-war; it’s a contest of strategic visions. LayerZero’s proposal includes acquiring Stargate’s treasury and future income, a move that critics argue undervalues the bridge’s assets. On the other hand, Wormhole sees untapped potential, emphasizing that “STG holders deserve better.”
Should Wormhole succeed, the union would create one of the largest cross-chain hubs in the crypto industry. The synergy of Stargate’s unified liquidity pools with Wormhole’s extensive network integrations promises to enhance trading volumes and bolster the resilience of both ecosystems in the long run.
“The Wormhole Foundation sees unrealized value in the Stargate brand, protocol, and protocol assets,” the proposal elaborated. They are confident that a merger would maximize both immediate and sustained value for current STG and future Wormhole holders.
Community and Market Reaction
The crypto community is abuzz with speculation. On forums and social media, users are dissecting the potential implications of each offer. Some are excited about the prospect of a Wormhole-Stargate alliance, viewing it as a strategic powerhouse that could redefine cross-chain interactions. Others, however, are wary, expressing concerns about centralization and the potential dilution of STG value.
Industry analysts are also weighing in. “This is a classic case of strategic acquisitions in the crypto space,” noted Emily Tran, a blockchain strategist. “These maneuvers are not just about acquiring assets but about shaping the future landscape of decentralized finance.” This sentiment echoes the broader trend of increased M&A activity in the crypto sector, as highlighted in our analysis.
The Road Ahead
Wormhole has requested a five-day delay in the community vote, advocating for more time to conduct due diligence and ensure a fair assessment of both offers. This delay could be pivotal, allowing stakeholders to consider the long-term implications of each bid carefully.
In the coming days, eyes will be on Stargate’s community as they deliberate over these competing proposals. The outcome could set a precedent for future acquisitions in the rapidly evolving cryptocurrency market. Will they lean towards LayerZero’s seemingly straightforward offer, or will Wormhole’s ambitious bid prove too enticing to resist? One thing’s for sure: the world of blockchain continues to be as unpredictable as it is exciting.
Source
This article is based on: Stargate Draws Second Acquisition Bid With Wormhole Topping LayerZero’s $110M Buy Offer
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
