Digital-asset trading and brokerage firm FalconX is actively seeking acquisition opportunities as the crypto sector braces for increased deal-making. Co-founder and CEO Raghu Yarlagadda predicts that the influx of institutional players and tightening regulations will lead to a “wave of consolidation” in 2025.
Yarlagadda stated, “Currently, we are actively exploring potential acquisitions and assessing relevant sectors and key players within them.” Despite the significant investment of $100 billion in digital-asset startups, acquisitions have been relatively rare in the industry. However, some smaller deals have emerged this year, including Robinhood Markets’ $200 million acquisition of Bitstamp and Zodia Markets’ purchase of Elwood Capital Management.
A recent report from Architect Partners indicated that overall crypto mergers and acquisitions (M&A) activity and value declined in the third quarter following an increase in the previous months.
FalconX is particularly interested in high-quality, smaller companies that specialize in institutional infrastructure, data and analytics, tokenization, and expanding trading teams. A spokesperson for the firm highlighted a notable increase in potential acquisition opportunities.
Founded in 2018 and based in San Mateo, California, FalconX was last valued at $8 billion following a $150 million funding round in 2022. The company is backed by prominent investors such as Tiger Global, GIC, and B Capital, and it has amassed over 600 institutional customers.
In the second quarter, FalconX reported a remarkable revenue increase, surging 2.5 times compared to the same period last year, with derivatives trading revenues nearly tripling. While specific figures were not disclosed, the firm’s strong performance provides a “good war chest” as it looks for acquisition targets in the coming year.
After a challenging 2022 marked by the collapse of TerraUSD and Sam Bankman-Fried’s crypto empire, Yarlagadda believes the surviving companies are now “leaner, faster, and stronger,” positioning themselves for growth in an evolving market.

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