Digital asset trading and brokerage firm FalconX is in deep negotiations to acquire Arbelos Markets, a derivatives startup founded in 2023 by two senior figures in the cryptocurrency industry.
FalconX seeks to acquire the cryptocurrency derivatives platform Arbelos.
According to Bloomberg, FalconX is in deep negotiations to acquire Arbelos Markets, with the deal expected to be financed through a mix of cash and FalconX stock, and is anticipated to be announced in the coming days.
Founded in 2018, FalconX is a company that specializes in providing cryptocurrency trading and investment solutions for institutions, allowing users to buy and sell digital assets through a crypto network, leveraging blockchain technology and machine learning to serve hedge funds, proprietary trading firms, and more. FalconX raised $150 million in 2022, with a valuation of $8 billion at that time.
Arbelos Markets is a cryptocurrency trading platform development company founded in 2023, focusing on providing liquidity in the cryptocurrency derivatives market. Founders Joshua Lim and Shiliang Tang are cryptocurrency traders with banking backgrounds.
Arbelos announced a $28 million financing round in May 2024, led by Dragonfly Capital, with notable investors including FalconX, Circle, Paxos, Immutable, and Deribit.
Cryptocurrency merger and acquisition transactions will surge in 2025.
FalconX co-founder and CEO Raghu Yarlagadda stated in October that he expects a wave of 'consolidation' in the industry and indicated that the company will actively seek acquisition targets.
According to data from The Block, cryptocurrency merger and acquisition (M&A) activity increased from 221 deals in 2023 to 248 deals in 2024.
Galaxy Ventures predicts that in 2025, cryptocurrency merger and acquisition activity will surge, driven by the return of fintech companies, banks, and tech firms to the cryptocurrency space. With increased regulatory transparency in the U.S., initial public offering (IPO) activity will resume, creating more opportunities for cryptocurrency companies to enter the public market.
This article states that 2025 will be the year of cryptocurrency mergers and acquisitions! FalconX is negotiating the acquisition of Arbelos, first appearing in Chain News ABMedia.