Glassnode Sells Bitcoin Tax Software to Blockpit, Focusing on DeFi Solutions
Crypto blockchain analytics firm Glassnode has completed the sale of its Bitcoin tax software, Accounting, to Blockpit, as it redirects its attention towards new solutions designed for institutional investors and decentralized finance (DeFi). The sale marks the conclusion of Glassnode’s crypto tax-related projects and operations in the industry.
In an official statement released on November 7, Blockpit confirmed its acquisition of Glassnode’s crypto tax software, Accounting, while the exact financial terms of the deal remained undisclosed. However, both companies suggested that the transaction was valued at multiple millions of dollars.
Analytics Company Shifts Focus to Institutional Investors and DeFi
Glassnode’s spokesperson commented on the transaction, characterizing it as the initial step in the analytics firm’s strategic shift. Glassnode now offers Digital Asset Intelligence Solutions tailored to its institutional clients and has spent recent months reshaping its infrastructure to pave the way for more significant contributions to the digital assets landscape, particularly in the realm of DeFi.
The representative emphasized Glassnode’s expansion objectives, stating:
“Having established the leading on-chain data platform for Bitcoin and Ethereum, we are currently expanding our product offering into DeFi. We aim to equip institutions with DeFi data and tools that help them trade in and navigate the DeFi space.”
It’s worth recalling that Glassnode initially acquired Accounting in October 2022, with the intention of integrating tax-reporting compliance tools into its platform to assist users with crypto tax compliance and reporting.
This deal comes at the perfect time and underlines our ambition and vision for a consolidated and unified #cryptotax platform for Europe (and beyond). https://t.co/HJvpTOtK4f pic.twitter.com/2Hd3ZTf1II
— Florian Wimmer (@FlorianWimmerAT) November 7, 2023
Blockpit, on the other hand, has taken a significant step toward expanding its presence in the United Kingdom by acquiring Accounting, a crypto tax software provider. In an email to CoinDesk, Blockpit expressed its desire to extend its services to UK-based customers. The company plans to scale its operations through a collaborative effort with UK authorities and a wide array of leading Certified Public Accountants (CPAs).
Blockpit CEO and co-founder Florian Wimmer emphasized that the acquisition would enhance the firm’s performance and functionality:
“Due to the very similar nature of the Blockpit and Accounting platform, the acquisition really is a perfect opportunity.”
Wimmer highlighted the interoperability between Blockpit and Accounting interfaces, allowing Accounting clients to effortlessly migrate their data and profiles to a new Blockpit account within a matter of minutes. This interaction would enable Blockpit to leverage joint resources to enhance its services, improve the user experience, and introduce new features.
Furthermore, the CEO pointed out that this strategic move would enable Blockpit to double its revenue without a substantial increase in expenses. The plan involves the eventual shutdown of Accounting’s infrastructure, facilitating the transfer of all users to a unified platform, ultimately boosting overall profitability.