Stripe Surges to $91.5 Billion Valuation, But IPO Remains Uncertain

The global fintech giant Stripe has surged to a $91.5 billion valuation through a new tender offer for employees and investors. This marks a 41% increase from its $65 billion valuation earlier in 2024 with a strong business performance. However, the valuation remains just below its all-time high of $95 billion in 2021. As part of the transaction, Stripe will repurchase shares, allowing employees to cash out some of their equity while the company continues to operate as a private entity.

The payments firm attributes its growth to investments in AI and machine learning, with its latest annual letter highlighting the rapid rise of AI startups. Stripe reported that AI companies are scaling faster than traditional SaaS firms, reaching $5 million in annualized revenue in just 24 months. Additionally, the company processed $1.4 trillion in total payment volume in 2024 and emphasized the crucial role stablecoins will play in its future, calling them the “superconductors” of finance.

Stripe’s latest annual report highlights the rapid growth of AI-powered startups and the increasing role of artificial intelligence in fintech. The company’s co-founders, Patrick and John Collison, pointed to AI-driven businesses like Cursor, Lovable, and Bolt achieving remarkable revenue milestones within months. They compared AI’s evolution to the rise of vertical SaaS, emphasizing that industry-specific AI tools are proving their long-term value by integrating deeply with workflows and data.

Beyond AI, Stripe is also active in the stablecoin market. The fintech giant believes stablecoins will be a transformative force in global finance, comparing their impact to past shifts from gold to fiat currency and paper to digital payments. The company acquired Bridge, a platform that simplifies stablecoin transactions for businesses. Stripe views stablecoins as financial “superconductors” that can drive economic growth and efficiency.

The company’s financial performance in 2024 has been strong, with total payment volume rising 38% year-over-year to $1.4 trillion. Stripe also confirmed its profitability, a major turnaround from its valuation dip in 2023. The company credits AI-driven payment solutions and expanding adoption by high-profile AI firms, including OpenAI and Anthropic, as key drivers of its rebound.

Despite its surging valuation, Stripe is in no hurry to go public. Leadership remains cautious about the pressures of public markets and is prioritizing long-term strategy over short-term earnings expectations. The company continues to provide liquidity for employees and early investors through structured share sales, maintaining flexibility as one of the largest privately held tech firms.

The company has embedded machine learning across its offerings, from fraud detection with Stripe Radar to AI-driven financing and payment optimization. Recent acquisitions, including TaxJar for tax automation and Bridge for stablecoin integration, further strengthen its fintech ecosystem. With its focus on AI, stablecoins, and global expansion, Stripe is positioning itself as a leader in the next phase of digital finance.

Stripe’s payment volume surged to $1.4 trillion in 2024, reflecting a 38% year-over-year increase. The company announced a tender offer to provide liquidity for employees and early investors, valuing Stripe at $91.5 billion. As part of the deal, investors will purchase shares from employees, while Stripe itself will also buy back stock, reinforcing confidence in its long-term strategy.

The broader financial sector is also evolving, with companies like Revolut exploring stablecoins and Visa testing crypto technologies. While investors anticipate a potential IPO, Stripe’s leadership remains committed to growth through strategic expansion and technological advancements.