Blockworks buys competitor Messari for more than $10 million

Crypto data and research platform Blockworks is acquiring rival Messari for more than $10 million. The Wall Street Journal reports this based on an insider. The acquisition is strikingly low compared to the valuation Messari had in 2022, and shows how hard the bear market can hit startups in the crypto sector.

From $300 million to a fraction of that

During a Series B funding round in 2022, Messari was valued at around $300 million. The acquisition for just over $10 million therefore represents a massive decline in the company’s value. The deal follows a period of management changes and restructurings at Messari, which clearly highlights the financial pressure on the platform.

In recent years, the crypto market has seen many promising startups struggle with disappointing revenues and high operational costs. Messari, once one of the best-known names in crypto research and data, did not escape this. The situation at the company deteriorated steadily, until the acquisition by Blockworks proved to be the only logical step.

Messari CEO moves to Blockworks

Following the acquisition, Messari CEO Diran Li joins Blockworks’ leadership team. This ensures his knowledge and experience remain within the sector, albeit under a different banner. Blockworks, which positions itself as a leading platform for crypto data and news, is further expanding its market position through the acquisition.

The deal is a clear signal that consolidation in the crypto information sector is continuing. Smaller players that raised significant funds during the bull run of 2021 and 2022 are now under pressure. Blockworks is benefiting from this by taking over a direct competitor while simultaneously absorbing Messari’s customer base and data. Whether other similar platforms face a similar fate remains to be seen.