Wormhole Raises Counteroffer for $110M Stargate Acquisition
Wormhole protocol has submitted a counteroffer to outbid LayerZero’s $110 million Stargate acquisition proposal. LayerZero first offered to swap STG for ZRO at a 1:0.08634 ratio and added revenue sharing for STG stakers. Despite 88% STG holder approval, Wormhole argues the Stargate acquisition undervalues the protocol’s $345 million TVL, $4 billion bridge volume and $92 million in liquid assets. The Wormhole Foundation has requested a five-day pause on the Snapshot vote. This will allow full due diligence on Stargate’s financials, assets, user metrics, liabilities and compliance. Wormhole aims to blend Stargate’s liquidity pools and user demand with its own cross-chain integrations. The counterbid could reshape valuations in cross-chain M&A deals.
Bullish
The emerging bidding war for the Stargate acquisition is bullish for STG tokens. A competitive counteroffer from Wormhole will likely push up the purchase price. This signals strong demand for Stargate’s liquidity pools and TVL. In the short term, traders may see upward price pressure on STG due to speculation on a higher bid. Over the long term, a successful acquisition at a premium could enhance Stargate’s market position and token value. Similar M&A scenarios in DeFi have led to sustained token rallies after deal confirmations.