FalconX Seeks Acquisition Opportunities Amid Industry Consolidation

According to PANews, FalconX, a digital asset trading and brokerage firm, is actively seeking acquisition opportunities in anticipation of a wave of industry transactions. Raghu Yarlagadda, co-founder and CEO of FalconX, stated in an interview that as more institutional players enter the market and regulatory pressures increase, the cost of operating cryptocurrency businesses will rise, leading to a 'consolidation wave' in 2025. Yarlagadda added that the company is currently exploring potential acquisition opportunities and evaluating key players in the industry. A spokesperson for FalconX noted a significant increase in potential acquisition opportunities. They mentioned that FalconX is looking to acquire high-quality small companies focused on institutional infrastructure, data and analytics, tokenization, and expanding its trading team by 2025. FalconX reported a record high in second-quarter revenue, with a 2.5-fold increase compared to the same period last year. The spokesperson also highlighted a nearly threefold increase in derivatives trading revenue but declined to provide specific figures. Founded in 2018 and headquartered in San Mateo, California, FalconX was valued at $8 billion in a $150 million funding round in 2022. According to its website, the company is backed by investors such as Tiger Global, GIC, and B Capital, and serves over 600 institutional clients.