Mastercard's Acquisition Bid for Zerohash Ending, Yet Strategic Investment Talks Continue

The ambitious $2 billion takeover plan between Mastercard and blockchain infrastructure provider Zerohash has come to an ending, according to three people familiar with the negotiations speaking on condition of anonymity. Nevertheless, investment discussions between the payments giant and the crypto infrastructure firm are progressing, marking a strategic pivot from outright acquisition to financial participation.

The situation represents a significant shift in dealmaking dynamics within the digital assets sector, where traditional financial institutions are increasingly willing to adapt their approach when independent companies choose to maintain their autonomy rather than accept acquisition offers.

Why Zerohash Chose Independence Over Acquisition

Zerohash decisively rejected Mastercard’s takeover proposal, which had reportedly valued the company at close to $2 billion during late-stage negotiations in 2025. The blockchain infrastructure firm’s leadership emphasized that maintaining independent status serves the company’s long-term interests better than being absorbed into a larger organization.

“We are not entertaining an acquisition by Mastercard. We respect the Mastercard team and look forward to scaling commercial partnerships,” Zerohash’s official spokesperson confirmed. “Our team is central to our velocity, and we believe that remaining independent best positions Zerohash to continue innovating, building and delivering for our customers.”

This decision underscores a broader pattern where proven infrastructure companies are increasingly confident in their market position and growth trajectory, enabling them to negotiate as partners rather than acquisition targets. Zerohash’s $104 million Series D-2 funding round, led by Interactive Brokers and featuring participation from Morgan Stanley, Jump Crypto, and other institutional investors, provided the capital and validation to support such a stance.

From Acquisition to Strategic Equity Investment

Instead of exiting through a full acquisition, Mastercard is now evaluating a minority equity stake or strategic investment in Zerohash. This transition from controlling acquisition to financial participation suggests the payments processor recognizes the value of maintaining the infrastructure firm’s independence while securing strategic alignment and potential future collaboration.

Mastercard declined to provide detailed commentary on the investment discussions. However, industry sources indicate that securing a meaningful minority position would allow the payments giant to participate in Zerohash’s growth trajectory without imposing operational constraints that could hinder the company’s innovation velocity.

The Evolving M&A Landscape in Crypto Infrastructure

The ending of the Mastercard-Zerohash acquisition, nevertheless, arrives amid a broader resurgence of M&A activity within the digital assets industry. CoinDesk reported that crypto data platform CoinGecko is exploring a sale valued around $500 million, signaling renewed dealmaking momentum across the sector.

Notably, the nature of attractive acquisition targets has fundamentally transformed. The most valued M&A candidates are no longer speculative blockchain protocols or experimental ventures. Instead, institutional investors and financial firms are pursuing proven infrastructure projects—specifically licensed exchanges, custody and staking providers serving institutional clients, and high-margin data and compliance platforms with established revenue streams.

Zerohash’s Strategic Position in the Market

Founded in 2017, Zerohash operates a critical infrastructure layer enabling financial institutions and fintech companies to integrate cryptocurrency, stablecoin, and tokenization services without building complex technical foundations from scratch. The platform provides APIs, custody solutions, settlement mechanisms, and fiat on-/off-ramp services that abstract away the operational complexity of digital assets.

Zerohash’s client ecosystem reflects the infrastructure’s strategic importance: Interactive Brokers, Stripe, BlackRock’s BUIDL fund, Franklin Templeton, and DraftKings all leverage the platform, collectively reaching more than 5 million users across 190 countries. This diverse client base demonstrates both the infrastructure’s maturity and its significance as a gateway enabling traditional financial entities to access crypto services.

Mastercard’s Broader Digital Assets Strategy

The pivot from acquisition to investment reflects Mastercard’s larger strategy within digital assets. Mastercard and Coinbase both engaged in acquisition discussions surrounding BVNK, a London-based fintech specializing in stablecoin payment infrastructure, with potential valuations reaching $2.5 billion. These multiple parallel negotiations underscore how major payment processors view crypto infrastructure as strategically essential rather than peripheral.

A strategic investment in Zerohash allows Mastercard to maintain relationships with independent infrastructure providers while avoiding the operational and regulatory complexity of full acquisitions. This approach provides optionality—the payments processor gains visibility into technological development, maintains partnership channels, and preserves the option for future deeper integration without committing to immediate ownership changes.