In a merger well timed for Valentine’s Day, research and analytics firm Delphi Digital has announced that it will be forming a harmonious union with 51percent Crypto Research, with the intention of creating the leading research firm in the crypto industry.
The two companies have merged in an all stock deal, with the new entity also operating under the name Delphi Digital. While Delphi Digital was already an established firm, 51percent was founded only last year by equity research analyst Tom Shaughnessy, and quickly gained an influential group of clients.
In a statement, Shaughnessy said, “After relentlessly providing crypto research and analysis for the past six months to a growing subscriber base, reception to our work has been remarkable. Taking the vision to the next level by merging with the leading analysts of Delphi Digital will position the joint firm as the resource people instantly think of when asked where they go for crypto research”.
Funding rounds like this speak to a long term outlook for the industry that is brighter than the bear market might suggest.
Excitement around the merger will also be boosted by the fact that Anthony “Pomp” Pompliano, prominent crypto advocate and partner at Morgan Creek Capital Management, will be joining the new look Delphi Digital as a board member, where he will help to steer the overall direction of the institution.
Of the merger, Pompliano said: “I’ve been impressed with the quality of past research from Delphi Digital and 51 Percent. In my opinion, it is essential that sophisticated capital allocators gain better access to institutional-grade research in order for the market to continue to mature. I am excited to help the new, combined company scale aggressively to accomplish this.”
While direct investments in cryptocurrency price have done poorly over the last six months, institutional support for companies providing secondary services has been more positive.
Blockchain analytics and auditing company Chainalysis recently announced it had closed a $30 million Series B funding round, hot on the heels of Pomp’s own Morgan Creek Capital launching a $40 million pension-backed VC fund specifically targeted at blockchain startups.
Funding rounds like these speak to a long term outlook for the industry that is brighter than the bear market might suggest, with investors anticipating a future market for blockchain services that will endure through boom and bust cycles.