Two of the crypto industry’s top firms are turning aggressive in their hunt for acquisition targets following the collapse in prices across the industry.
According to a report by CNBC published on May 31, Ripple and FTX have both said that they are looking for good acquisition targets, using the recent market crash as a buying opportunity to drive growth. The report claims the hunt is a sign that the crypto firms feel they have become large and well capitalized enough to begin splurging cash on acquisitions.
Brett Harrison, president of crypto exchange FTX U.S., told CNBC in an interview that his company is in “a very good spot in terms of our capital and cash” and that it will “look around the market for potential merger and acquisition opportunities.”
Harrison said the crypto firm wants to find companies that could “help them acquire more users or regulatory licenses.” A CNBC report published on May 23 claimed that FTX was looking for brokerage start-ups in order to make a push into stock trading.
Brad Garlinghouse, CEO of FinTech firm Ripple, told CNBC during an interview at Davos 2022 that the company has a “very strong balance sheet,” and predicted an uptick in mergers and acquisitions in the crypto industry.
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.
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