As Crypto Prices Continue to Plunge, These Companies Are Preparing to Take Advantage

The search for acquisitions in the crypto space is heating up.

learn more about Amanda Breen

By Amanda Breen • May 31, 2022

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.

Related: Crypto Exchange Shuts Down Withdrawals After Hackers Reportedly Steal $33 Million in Bitcoin, Ethereum

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."

Related: Bitcoin Skyrockets After Biden Sign Executive Order to Regulate Crypto

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.

Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at Entrepreneur.com. She is a graduate of Barnard College and recently completed the MFA in writing at Columbia University, where she was a news fellow for the School of the Arts during the 2020-2021 academic year. 

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Business News

Frontier Airlines Just Announced Its All-You-Can-Fly Summer Pass for $399. What's the Catch?

As travel begins to pick up, the airline hopes unlimited travel will jumpstart its business.

Starting a Business

How To Raise Capital For A New Business Idea

These practical methods and tools are available to entrepreneurs who want to raise money to create their own new businesses.

Business News

The Scam Artist Who Robbed Backstreet Boys and NSYNC Blind. 'Some of the Guys Couldn't Pay Their Car Payment.'

In the 1990s, Lou Pearlman made millions creating the Backstreet Boys and NSYNC. It was all a giant Ponzi scheme.

Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.