Stargate Attracts Another Buyout Bid, with Wormhole Outbidding LayerZero’s $110 Million Deal

Wormhole Challenges LayerZero’s $110M Stargate Acquisition Bid, Seeks Vote Postponement

LayerZero’s $110 million token-swap proposal to acquire Stargate now faces stiff competition as Wormhole steps in with a higher offer and requests a delay in Stargate’s governance vote.

Wormhole urges postponing the Snapshot vote to allow the community sufficient time to consider its superior bid.

Stargate’s appeal is clear: the bridge handled $4 billion in transaction volume in July, holds $345 million in total value locked (TVL), and controls a treasury containing $92 million in stablecoins and ether, plus $55 million in STG tokens and other assets. Its annual revenue stands at roughly $2 million.

“Based on our review, we believe STG holders deserve a more competitive process, and we are prepared to submit a substantially higher bid,” Wormhole’s proposal declared.

LayerZero’s offer, which includes the transfer of both the treasury and future revenue, has been criticized for undervaluing Stargate. Wormhole contends the terms shortchange token holders, insisting that “STG holders deserve better.”

A Wormhole-Stargate merger would create one of crypto’s largest cross-chain hubs, combining Stargate’s unified liquidity pools with Wormhole’s extensive network integrations. The Wormhole Foundation asserts this union would boost trading volumes and improve long-term ecosystem resilience.

“The Wormhole Foundation recognizes significant unrealized value in Stargate’s brand, protocol, and assets,” the proposal said. “We are confident that integrating Stargate with the Wormhole ecosystem will maximize value for both current STG holders and Wormhole token holders, present and future.”

To facilitate a thorough review, Wormhole has requested a five-day extension for the governance vote.