FalconX is in talks to acquire Arbelos Markets, a cryptocurrency derivatives startup. Despite previous setbacks over the past few years, FalconX recently posted a record quarter and is looking to make major acquisitions.
The CEO predicts a “wave of consolidation” by 2025, and Arbelos’ position in the growing derivatives market makes it an attractive target.
FalconX acquires Arbelos
FalconX, a leading platform in digital asset trading and brokerage, is finding a way buy back Arbelos Markets. The company’s peak was in 2021, when it won major capital and quintupled its value in five months. Since then, FalconX has encountered major problems, with 18% of total funds locked on a failed exchange and new fines from the CFTC this year.
However, according to Bloomberg, one thing recover is going on. In October 2024, FalconX posted a record quarter, and the company began looking for acquisitions. Co-founder and CEO Raghu Yarlagadda offers an optimistic outlook for 2025.
“The cost of doing business in the cryptocurrency sector will increase as more institutions enter the market and regulations tighten. That will trigger a wave of consolidation in 2025. We are now actively looking for potential acquisitions and evaluating relevant sectors and key players within them,” Yarlagadda said.
After two months of searching, FalconX appears to have identified its next acquisition target: Arbelos Markets, a cryptocurrency derivatives startup. According to anonymous sources, the deal will take place in the next few days and FalconX will pay in cash and company shares. For his part, Arbelos has a clear grasp of important market trends.
Derivatives markets have gained prominence in the cryptocurrency market over the past few months. Some important players, such as on-chain analytics company Arkham Intelligence, have recently moved significantly into this space. By acquiring Arbelos, FalconX can also take advantage of this trend. Only time will tell whether mergers and acquisitions in the cryptocurrency sector will increase in 2025.
Over the past few years, FalconX has seen significant growth driven by growing demand for digital asset brokerage services.
In April 2022, FalconX became the first CFTC-registered cryptocurrency swaps trader, enhancing its regulatory position and providing customers with secure access to coin derivatives markets Decentralized electronics.
The company has attracted significant investment, raising a total of $430 million across multiple funding rounds from investors including GIC, B Capital, and Tiger Global Management.
