June 2, 2022 · less than 3 min read
Yes, the crypto crash was brutal, but it’s not stopping big boys Ripple and FTX from splashing that cash.
Still riding the wave
This is for all the crypto lovers out there. Both Ripple and FTX are on the hunt for acquisitions, looking to drive growth by buying other firms. The crash was challenging to say the least (if you know, you know), but larger firms have been able to weather the storm and their continued willingness to spend and invest proves this.
Brett Harrison, President of FTX US, recently shared that the company was in a comfy spot in terms of capital and that sweet, sweet cash. FTX has continued to grow over the last two years, acquiring trading platform Blockfolio in 2020 and futures exchange LedgerX in 2021.
Of their healthy acquisitions process, Harrison said, “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.” We hear ya, Harrison.
Market crash? Let’s spend cash!
For large firms in the crypto market, a crash can’t stand in the way of potential. In 2021, mergers and acquisitions activity boomed, with the value of transactions at more than $55 billion versus $1.1 billion in 2020. Since then, prices have tumbled, and Bitcoin is now about 55% off its record high.
These facts are no deterrent for FTX and Ripple, as you can probably tell. They’re confident those record highs can be reached again, given time. And we love that confidence.
Brad Garlinghouse, CEO of Ripple, said, “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. We’re now at a stage of growth where I think we’re more likely to be the buyer versus the seller.” Watch this space, crypto gang.
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