Crypto stock plunge could pump the brakes on IPO and deal market

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ICYMI: Crypto stock plunge could pump the brakes on a busy deals market

While bitcoin’s price has fallen sharply since the beginning of 2022, some crypto stocks have seen steeper declines.advertisementBarry Silbert, chief executive of crypto power-house DCG, was of course sarcastic in; it's been a brutal period for publicly traded companies in the digital asset market amid the ongoing rout in liquid tokens.

Friday's session was even worse for MicroStrategy, which plunged on reports that the Securities and Exchange Commission had rebuffed the company's approach to accounting for bitcoin in financial disclosures. It's down more than 71% from its February 2021 high. At the same time, venture funds in the market have been raising billions of dollars in fresh funding. FTX announced its own $2 billion fund earlier this month, following the lead of venture capital firms Paradigm and a16z.

"Certainly, both equities and crypto market trends matter for crypto-based business IPO aspirations," said Eric Risley, managing partner of M&A advisory firm Architect Partners.

 

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