In a brutal February 2025 sell-off for public FinTech stocks, Stripe proved once again why staying private can pay off. While Block plummeted 28%, PayPal and Coinbase each shed 20% or more, and SoFi slid 8%, the payments giant announced a tender offer on Thursday, February 27, valuing itself at $91.5 billion—a 40% jump from a year ago. At that figure, Stripe towers over its public peers, dodging the volatility that’s rocked the sector and cementing its status as a private market darling.
Private Power: Stripe Outpaces the Pack
The FinTech bloodbath hit hard: Block’s 28% dive was its worst since 2023, triggered by a Q4 earnings miss, while PayPal and Coinbase stumbled despite beating estimates. Broader market pressures—like a 4% Nasdaq drop and a 1.4% S&P 500 decline—didn’t help, fueled by tariff threats from President Donald Trump and a spike in U.S. unemployment claims. Fintechs, sensitive to interest rates and consumer confidence, bore the brunt.
Stripe, meanwhile, sidestepped the chaos. “They benefit from being private because there’s a handful of stocks that people want to buy, and they trade at a premium to public valuations,” said Larry Albukerk of EB Exchange, a pre-IPO share trading platform. Alongside elite private firms like SpaceX and Anthropic, Stripe’s scarcity—tight supply, high demand—drives its value skyward. Its latest tender offer, letting employees cash out shares, pushes it near its $95 billion peak from the 2021 pandemic boom.
A FinTech Giant Stays Nimble
Founded in 2010 by brothers Patrick and John Collison, Stripe has outlasted peers like Block (Square), Coinbase, and SoFi in the private realm. President John Collison told CNBC’s Andrew Ross Sorkin this week, “We are not dogmatic on the public vs. private question,” with “no near-term IPO plans.” That flexibility paid off in 2024: Stripe processed $1.4 trillion in payment volume (up 38% year-over-year), turned profitable, and saw its finance and tax unit hit a $500 million revenue run rate—all without the quarterly scrutiny public firms face.
Crypto Push and Compliance Challenges
Stripe’s not resting on its laurels. This month, it sealed a $1.1 billion acquisition of Bridge, a stablecoin infrastructure provider, doubling down on crypto payments. Stablecoin transactions on Stripe more than doubled from Q4 2023 to Q4 2024, a trend the company credits to “fundamentals for adoption falling into place.” Trump’s pro-crypto executive order could further boost this move, contrasting with the Biden era’s regulatory chill—exposed recently by FDIC “pause letters” to banks.
Yet, challenges loom. Banks like Wells Fargo and Goldman Sachs have pulled back from Stripe, per The Information, forcing tie-ups with Deutsche Bank and others. Collison noted on “Squawk Box” that banks are growing wary of FinTech partnerships amid tighter regulations, prompting Stripe to triple its risk and compliance team to 700 over two years.
Private Market Momentum
Stripe’s valuation surge reflects a broader private market rally. Forge’s Private Market Index, tracking demand for private shares, jumped over 33% in the past three months—before Stripe’s latest bump. “This could be further evidence of the broad rally we’re observing in the private market, rippling beyond the AI sector,” said Forge CEO Kelly Rodriques. Unlike public fintechs battered by economic headwinds, Stripe’s opacity and exclusivity keep investors clamoring.
What’s Next for Stripe in 2025?
Stripe’s $91.5 billion valuation isn’t just a flex—it’s a lifeline for employees and early investors seeking liquidity without an IPO. As public fintechs reel, Stripe’s private status offers stability and a premium valuation. Will it ride the crypto wave and compliance hurdles to new heights, or eventually go public?
For now, the Collison brothers are proving private can be the smarter play. Stay tuned for more on Stripe’s FinTech reign!
