Cryptocurrency-based trading platform Blockchain.com has acquired sports betting data firm Stratagem for an undisclosed sum as part of a drive to “build an entirely new financial system.”
The Luxembourg-based platform will incorporate the firm’s AI insights software as part of its cryptocurrency-focused technology verticals.
“Stratagem has brought together some of the brightest minds in Europe across data science, quantitative research, and machine learning,” said a statement from Blockchain.
“Since their founding, they have developed cutting edge machine learning software to understand the highly volatile nascent market of sports betting. We were instantly impressed with the braintrust they had created and found immediate synergies between our two companies.”
The deal will also include all of Stratagem’s “world class” AI development team, as part of Blockchain’s drive to deliver “more products and services that enable [clients] to store, trade, transact and most importantly maintain complete control of [their] crypto.”
Stratagem, founded in 2013 by former Deutsche Bank executive Andreas Koukorinis, will form a key part of Blockchain’s product portfolio expansion, providing market access to the rapidly growing cryptocurrency gaming sector.
The deal will see Blockchain’s remit extend beyond traditional trading and exchange functions, delivering a new sports-centric aspect to its product offering.
Stratagem’s business model revolves around partnering machine learning with statistical modelling and analysis in order to provide in-depth sport and betting predictions, as well as real-time market pricing and risk management assessment.
“We are thrilled to join Blockchain and strongly believe this is the right platform to leverage the expertise built up at Stratagem since its founding,” said Stratagem CEO Charlie McGarraugh. “We’re delighted to join the team and look forward to the journey ahead!”
Stratagem’s repositioning of sports data as a financial asset within insight software has seen the company report significant growth over the last five years, with several high-ranking appointments from Goldman Sachs, Deutsche Bank, and UBS.
“At Blockchain, we will apply their talent and machine learning technology inside our execution services platform, smart order router, machine trading platform and more to further ensure we’re offering best execution to both our retail and institutional customers.”