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TEXXR

Chronicles

The story behind the story

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Crypto-exchange giant Binance makes a strategic investment in Chinese crypto media firm Mars Finance, at a post-money valuation of ~$200M

- Mars Finance reached a $200 million post-money valuation  — Investors also include Bitmain co-founder's new crypto firm

Bloomberg Zheping Huang

Context & Ripple Effects

Binance is putting its own balance sheet behind crypto media, taking a strategic stake in Chinese outlet Mars Finance at roughly $200M post-money alongside an investor tied to Bitmain — the mining giant that drew Sequoia and IDG into a $50M round back in 2017. The move puts an exchange in partial control of one of its most important information pipelines.

It is also the opening move in a pattern the related coverage makes visible: two and a half years later, Binance followed with a $200M investment in Forbes to support its SPAC merger plan, showing media stakes becoming a recurring tool in the exchange's playbook.

First-order effects

  • Mars Finance gains both capital and a direct commercial tie to the world's largest exchange, while Binance secures influence over a leading Chinese-language crypto news channel covering its own market.
  • Bitmain's co-founder extends his footprint beyond mining hardware into crypto finance and media, following the institutional validation his company won from Sequoia and IDG.

Second-order effects

  • Rival exchanges now compete against a player whose ecosystem spans trading and the media that shapes sentiment around it, raising pressure to build or buy their own distribution channels — the same logic behind Binance's later Forbes deal.

Third-order effects

  • If exchanges keep converting trading profits into equity across media, payments (Mesh) and asset management (Babel Finance), the industry structurally shifts toward vertically integrated conglomerates where the venue, the coverage, and the capital are owned by the same balance sheet — with attendant questions about editorial independence.

The trend: Crypto exchanges are using their balance sheets to buy stakes in adjacent businesses — media, payments, asset management — turning trading venues into vertically integrated financial groups, with Binance's MGX-backed scale accelerating the push.

Discussion

  • @cz_binance CZ Binance on x
    Let's make more news, and less FUD. Invest in the industry. https://www.bloomberg.com/...
  • @mdudas Mike Dudas on x
    It is fascinating how different China's news and journalism market is from Western countries. @TheBlock__ was pilloried for taking $25K from Coinbase. Meanwhile, the largest operating cryptocurrency exchanges and businesses are backing Mars Finance https://www.bloomberg.com/... h…