As Crypto Prices Continue to Plunge, These Companies Are Preparing to Take Advantage
The search for acquisitions in the crypto space is heating up.
As cryptocurrency prices continue to plummet, some companies are ready to take advantage of the fall. Two top firms, Ripple and FTX, informed CNBC that 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 exchange FTX U.S., revealed the company is in "a very good spot in terms of our capital and cash" and plans to scope out possible merger and acquisition 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 and CNBC'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 company Ripple cited 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."
Data on crypto's recent mergers and acquisition history also lends weight to Harrison's and Garlinghouse's assessments. Per PWC, 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.
Bitcoin was 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.