Funding Wallet: Address: 0xab192f58...5f39aab47 | Etherscan
We have a lot of respect for the Stargate community, and are eager to work with the Stargate team to make a fair deal for STG holders. While we continue our ongoing diligence efforts (we are still waiting on information from the Stargate team), we wanted to put to rest the notion that Wormhole is not serious about making an offer, as well as assuage concerns of existing Stargate partners that they will lose any access or privileges they currently enjoy.
Relying solely on the existing bid of $110 million (ZRO tokens), we are prepared to make an offer of at least $120 million (USDC) for Stargate. An all-cash purchase provides STG holders with the greatest certainty of what they will be paid without delay.
Growing Stargate Post-Acquisition
Wormhole contributors and partners are actively planning the next steps after acquiring Stargate. Completing the acquisition of Stargate would be complementary for many of our existing products, and even more so for two of our in-development projects that are yet to be announced.
Be assured that we see numerous opportunities to grow and leverage Stargate through premier partnerships. One example is real-world assets, where Wormhole is a leader with assets like BUIDL from Blackrock, ACRED from Apollo, funds from Hamilton Lane, leading stablecoins, and many more. We view Stargate as an asset that has not been provided the resources it needs to grow, and we intend to correct that. With the proper resources, Stargate can provide more value to users and continue to improve its product.
Pledge To Honor Stargate Commitments
Further, Wormhole intends to leave in place and honor commitments made by Stargate to counterparties, integrators, and contributors for a minimum of 12 months. Identifying all documented commitments is part of our ongoing diligence process.
Our offer would also ensure that current veSTG holders receive 3x the projected revenue for the next 6 months, accelerated and paid immediately, as part of our successful acquisition.
Due Diligence
We urge the Stargate Foundation, STG holders, and voters to allow a competitive bidding process, rather than proceeding with a lower offer. As a responsible actor, Wormhole must conduct reasonable due diligence for an acquisition of this size.
We are finalizing the details of an NDA, and in parallel the Stargate team is preparing the first group of diligence documents we have requested.
We are not requesting any trade secrets, client lists, future development plans, or similar information. Our primary objective is to verify the assets, liabilities, and obligations of Stargate, enabling us to submit the highest possible bid for the best outcome for both Wormhole and Stargate.
We want to remind STG holders and the Stargate Foundation that there is little to lose by allowing a few additional days for a competitive bidding process. The worst that can occur with such a process is the initial offer is accepted a week later than it otherwise would be. By contrast, a quick sale to a related party on a low valuation prevents STG holders from realizing the fair value of their tokens.
Initial Funding
The Wormhole Foundation has arranged financing for this transaction, subject to negotiation and execution of definitive financing legal documentation and the financing party’s satisfactory completion of operational, financial, and legal due diligence. To demonstrate its seriousness, this party has moved initial adequate funds into its segregated wallet identified above.
This is just a start, and we are prepared to engage in a fair bidding process.