FalconX: Pushing Forward with Crypto Company Acquisitions
FalconX is accelerating its efforts to expand through acquisitions. The company plans to focus on acquiring top-tier, smaller companies, with a primary interest in tokenization, institutional infrastructure, and data analytics.
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FalconX is accelerating its efforts to expand through acquisitions. The company plans to focus on acquiring top-tier, smaller companies, with a primary interest in tokenization, institutional infrastructure, and data analytics.
Raghu Yarlagadda, FalconX’s co-founder and CEO, predicts that operational costs for crypto businesses will increase as traditional finance firms move into the market and regulatory environments tighten.
Yarlagadda believes this trend will lead to a surge in acquisitions by 2025, where big companies will take over smaller competitors, frequently keeping management and development teams intact.
“Currently, we are actively exploring potential acquisitions and assessing the relevant sectors and key players within them,” Yarlagadda stated.
Acquisitions are not common in the crypto sector, as most startup founders prefer securing venture capital funding instead of selling to bigger companies.
Related insights: Crypto Projects Raise Over $600M in September 2024.
Understanding the Differences Between Mergers and Acquisitions. Source: dealroom.net
In 2024, this pattern changed. For instance, Robinhood Markets acquired Bitstamp for $200 million, while Elwood Capital Management Ltd purchased Zodia Markets for $70 million.
Quarterly Funding for Crypto Projects. Source: theblock.co.
FalconX, founded in 2018, has reached a valuation of $8 billion. The company is supported by major funds like Tiger Global, GIC, B Capital, along with over 600 other investors.
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