Crypto firms are on hunt for acquisition target amid dips in prices

Two high cryptocurrency companies, Ripple and FTX, told CNBC that they’re on the lookout for acquisitions because the trade hopes to drive growth through shopping for different companies. It’s an indication that some crypto firms feel that they’re massive enough and well capitalized to splash the money on acquisitions. Brett Harrison, president of cryptocurrency exchange FTX U.S., said during an interview last week that the corporation is in a superb spot in terms of our capital and cash and can go searching the marketplace for potential merger and acquisition opportunities.

Crypto exchanges looking for firms to acquire more users

Harrison highlighted that FTX U.S. will hunt for corporations which are able to facilitate them acquire a lot of users or restrictive licenses. In 2020, FTX non inheritable mercantilism platform Blockfolio helped it get more users. Earlier this month, CNBC reported that FTX is trying to find brokerage start-ups to amass to push any into stock trading.

Last year, FTX U.S. bought LedgerX, a commodities market that had many licenses from regulators within the U.S.

consistent with Harrison, the firm is doing that globally, in places like in Japan, Australia, in Dubai, completely different places wherever the firm has been able to either partner with native corporations or generally do acquisitions to be able to get licenses that it needs.

Ripple has a robust balance sheet

Meanwhile, Brad Garlinghouse, chief executive officer of cross-border payments company Ripple, said the corporation has “a terribly strong balance sheet,” predicting an increase in mergers acquisitions within the crypto industry.

Garlinghouse thinks there’ll be dealing in M&A in the blockchain and crypto space. we have a tendency to haven’t seen that yet. However, that’s doubtless in the future. and positively it looks as that unfolds, we might contemplate things like that, Garlinghouse told CNBC in an interview last week at the globe Economic Forum in Davos, Switzerland.

consistent with Garlinghouse, Ripple is currently at a stage of growth wherever he thinks the firm is a bit doubtless to be the customer versus the seller.

Mergers and acquisition activity in crypto boomed in 2021 with the world worth of such transactions totaling over $55 billion, versus $1.1 billion in 2020, according to PWC. That coincided with a boom in cryptocurrency costs that took bitcoin to an incomparable high in Nov last year.