As Crypto Prices Continue to Plunge, These Companies Are Preparing to Take AdvantageThe search for acquisitions in the crypto space is heating up.
ByAmanda Breen•
Ascryptocurrency prices continue to plummet, some companies are ready to take advantage of the fall. Two top firms, Ripple and FTX, informedCNBCthat they're searching for acquisitions — and hoping that the buyouts spur growth in the industry overall.
In an interview last week, Brett Harrison, president of cryptocurrency exchangeFTXU.S., revealed the company is in "a very good spot in terms of our capital and cash" and plans to scope out possible merger andacquisition opportunities. Harrison also said the firm will seek companies that can help it gain additional users or regulatory licenses.
The announcement follows FTX's 2020 acquisition of trading platform Blockfolio andCNBC's report earlier this month that the firm is searching for brokerage startups in an attempt to dive deeper into stock trading.
Similarly, cross-border payments companyRipplecited its "very strong balance sheet," believing an increase in mergers and acquisitions within the crypto industry is on the horizon. "I think there'll be an uptick in M&A in the blockchain and crypto space," CEO Brad Garlinghouse told CNBC last week. "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."
Related:Bitcoin Skyrockets After Biden Sign Executive Order to Regulate Crypto
Data oncrypto最近的并购历史也兰ds weight to Harrison's and Garlinghouse's assessments. PerPWC, the global value of such transactions in the crypto space totaled upwards of $55 billion in 2021 — a sharp increase over its $1.1 billion total in 2020.
Bitcoinwas trading at $31,525.20 as of 10:25 a.m. EST, down more than 16% month over month — and far below its all-time high of over $68,000 in November 2021.
