FalconX, a cryptocurrency platform, has raised $8 billion in a new financing round

FalconX, a cryptocurrency platform, has raised $8 billion in a new financing round ...

Despite a recent rebound in crypto markets, digital assets platform FalconX was valued at $8 billion (roughly Rs. 62,665 crore) in a new funding round led by Singapore''s sovereign wealth fund GIC and B Capital, which more than doubled its valuation in ten months.

This funding round totaled $150 million (roughly Rs. 1,174 crore) from new and existing investors, bringing fresh capital to the company, even as cryptocurrencies have adversely developed. Not all money will go to the company''s coffers, although some investors also sold an unnamed share in FalconX.

The deal comes as FalconX plans to increase its workforce by 30 percent in the coming months, adding 55 additional employees to the company. It also intends to use the proceeds in acquisitions, technology, and data analytics, expanding its services to institutions from trading execution, credit, and prime brokerage, according to Yarlagadda.

We anticipate a very volatile market over the next 12 to 18 months, as a result of this volatility. According to Yarlagadda, these are particularly attractive opportunities for acquisitions.

New investors in the company include Thoma Bravo, a private equity firm, and Adams Street Capital, while existing investors Tidget Global Management, Thoma Bravo, and Wellington Management invested more in FalconX.

The environment for financing raises has become more challenging for crypto firms, according to Yarlagadda.

As we spoke with these investors, the key issue is the rejection of value because investors are no longer looking at growth and cost. Now, investors are very specific about sustainable growth. They are looking at profitability.

For the first time since December 2020, cryptocurrency valuations have decreased in recent weeks as investors dump risky assets in a rising interest rates pattern.

Yarlagadda said the platform is already profitable and has reached an all-time high among users, without further disclosures.

2022, Thomson Reuters

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