Goldman Sachs to Spend Tens of Millions On Crypto Companies
In the wake of the FTX implosion, Goldman Sachs is going bargain hunting in the cryptoverse. According to a recent report in Reuters, Goldman is planning to spend tens of millions of dollars on direct investment and potential acquisitions of crypto-focused companies.
Since FTX, valuations in the crypto space have – as well as the prices of BTC, ETH and others – plummeted, leading the investment bank, who controls $1.5 trillion in assets, to begin its search for investable value in the space…
Perhaps because they see current corporate valuations and the prices of some crypto assets have become incredibly attractive… and potentially incredibly lucrative for the firm?
Mathew McDermott, head of digital assets at Goldman told Reuters “We do see some really interesting opportunities, priced much more sensibly…
“It’s {FTX} definitely set the market back in terms of sentiment, there’s absolutely no doubt of that. FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform,” said McDermott.
He went on to note that the FTX collapse actually caused an increase in crypto trading volume at the firm, saying, “What’s increased is the number of financial institutions wanting to trade with us. I suspect a number of them traded with FTX, but I can’t say that with cast iron certainty.”
While it remains unclear which assets or companies Goldman may be targeting, many publicly traded companies in the space (as well as privately held companies) have seen valuations drop by as much as 90% or more since the Bitcoin highs back in November of 2021.
Are we at the crypto bottom? It seems like Goldman Sachs may believe so.
Read the full Reuters story, HERE