Publications
Publications
- November 2024
- HBS Case Collection
Mercado Bitcoin: M&A, IPO, or Series B?
By: Raymond Kluender, Emanuele Colonnelli and Sabrina Howell
Abstract
Teaching Note for HBS Case No. 825-047. In April 2021, Brazilian cryptocurrency platform Mercado Bitcoin, had to decide how to scale: go public, M&A with a bank, or take a VC big check. In a highly volatile market, Roberto Dagnoni, chairman of the board, viewed the unprecedent crypto momentum as a window of opportunity for achieving the liquidity they needed to accelerate the company’s expansion plans. In a striking twist of events for Mercado Bitcoin, which had just closed a challenging Series-A capital round after a year of hard negotiations, while considering an Initial Public Offering (IPO), the company was approached by the M&A teams of two large banks. And SoftBank, the largest-ever technology-focused fund in Latin America, presented a tempting term sheet. The case goes through the history of Mercado Bitcoin, from being the first Brazilian cryptocurrency exchange platform into becoming one of the largest crypto asset exchanges in Latin America; the challenges faced throughout it, from market swings to the lack of regulatory infrastructure; up to the dilemma point, presenting the cons and pros of the three options, viewing the company’s insights, revenue forecasts, and comparatives of reference companies.
Keywords
Business Ventures; Mergers and Acquisitions; Business Growth and Maturation; Business Startups; Decision Making; Going Public; Ownership Stake; Strategic Planning; Venture Capital; Problems and Challenges; Business Cycles; Digital Platforms; Emerging Markets; Market Timing; Expansion; Diversification; Value; Valuation; Value Creation; Investment Funds; Initial Public Offering; Price; Price Bubble; Negotiation Offer; Information Technology Industry; Financial Services Industry
Citation
Kluender, Raymond, Emanuele Colonnelli, and Sabrina Howell. "Mercado Bitcoin: M&A, IPO, or Series B?" Harvard Business School Teaching Note 825-092, November 2024.