Ripple, FTX on the hunt for acquisition targets as market crashes

0
313
Ripple, FTX on the hunt for acquisition targets as market crashes

Revealed: The Secrets our Clients Used to Earn $3 Billion

Two leading cryptocurrency business, Ripple and FTX, informed CNBC that they watch for acquisitions as the market intends to drive development through purchasing other companies.

It is an indication that some crypto companies feel that they’re big enough and well capitalized to sprinkle the money on acquisitions.

Brett Harrison, president of cryptocurrency exchange FTX U.S., stated in an interview recently that the business remains in “a very good spot in terms of our capital and cash” and will “look around the market for potential merger and acquisition opportunities.”

Harrison stated that FTX U.S. will search for business which will assist them get more users or regulative licenses. In 2020, FTX obtained trading platform Blockfolio which assisted it get more users. Earlier this month, CNBC reported that FTX is searching for brokerage start-ups to get to press even more into stock trading.

Last year, FTX U.S. purchased LedgerX, a futures exchange that had a number of licenses from regulators in the U.S.

“We’re doing that globally, in places like in Japan, Australia, in Dubai, different places where we’ve been able to either partner with local companies or sometimes do acquisitions to be able to get licenses that we need,” Harrison stated.

Meanwhile, Brad Garlinghouse, CEO of cross-border payments business Ripple, stated the business has “a very strong balance sheet,” anticipating an increase in mergers and acquisitions in the crypto market.

“I think there’ll be an uptick in M&A in the blockchain and crypto space. We haven’t seen that yet. But I think that’s likely in the future. And I certainly think as that unfolds, we would consider things like that,” Garlinghouse informed CNBC in an interview recently at the World Economic Forum in Davos, Switzerland.

“We’re now at a stage of growth where I think we’re more likely to be the buyer versus the … seller,” he included.

Mergers and acquisition activity in crypto expanded in 2021 with the worldwide worth of such deals amounting to more than $55 billion, versus $1.1 billion in 2020, according to PWC. That accompanied a boom in cryptocurrency costs that took bitcoin to an all-time high in November in 2015.

But ever since, costs have actually come crashing down. Bitcoin has to do with 55% off of its record high of $68,99090, according to CoinDesk information.

A drop in cryptocurrency costs, and possibly evaluations of business in the market, might make sure acquisitions appealing to bigger gamers.

Follow CNBC International on Twitter and Facebook