Just recently, co-founder of Morgan Creek Digital, Anthony Pompliano, shared his thoughts about the recent deal that was finalized between Square and Afterpay. Pompliano talked about the significance of the recent deal that has taken place between the two firms.
He stated that Square would be able to benefit tremendously from the recent deal it has formed with Afterpay. It was just yesterday, August 3, 2021, when reports started emerging surrounding Square’s acquisition of Afterpay, a “buy-now-pay-later” firm from Australia.
Pompliano has stated that the acquisition of Afterpay would help Square increase its market valuation at a high rate. He has predicted that the recent move made by Square may help the company increase its market valuation up to $1 trillion.
Afterpay’s acquisition carried out by Square is a well-measured move by its CEO, Jack Dorsey. Jack Dorsey is also the CEO of Twitter and he has acquired Afterpay, with aim of competing with one of the largest online payments service providers in the world, PayPal.
Jack Dorsey has proceeded with the move for the acquisition of Afterpay at a price of $29 billion. Jack Dorsey also used this opportunity to share Square’s revenue figures for the second quarter of 2021. He revealed that in the second quarter of 2021, Square has managed to generate $2.7 billion in revenue for sales in Bitcoin (BTC).
According to Pompliano, Jack Dorsey has made a very smart move gaining a lot of prominence in both the crypto and financial sectors. He has helped his own company Square and Afterpay gain from the announcements.
This move would help both companies gain a lot of surge in terms of their share prices and help them earn market presence.
Pompliano stated that Jack Dorsey’s move has proven to be a “Best Business” show for the entire industry. He shared his views about Square through his YouTube channel in a YouTube video.
He stated that as per his estimates, the minimum gain Square is going to witness from the deal is 2X its market value. When it comes to maximum gains with a conservative perspective, then the gains would go all the way up to 5X.
At the time of writing, the current market capitalization of Square is $122.72 billion and at that of Afterpay is somewhere around $40 billion. Pompliano stated that it is quite possible that Square moves towards a merger with Afterpay, which may bring the total market capitalization of both firs to $162.72 billion.
Keeping in mind the stock price gains both firms are going to make from the deal, it is possible that their combined market capitalization may hit $200 billion. Therefore, if the company gains 2X growth, then it is going to be around $400 billion, and the max would be 5X ($1,000 billion).