PANews reported on January 1 that according to Bloomberg, digital asset trading and brokerage company FalconX is in advanced negotiations to acquire Arbelos Markets, a derivatives startup founded in 2023 by two crypto industry veterans. According to people familiar with the matter, the transaction will be financed through a combination of cash and FalconX stock and is expected to be announced in the next few days. It is not clear how much Arbelos is valued in this transaction.
FalconX co-founder and CEO Raghu Yarlagadda said in October he expected a "wave of consolidation" in the industry, adding that the company would actively seek acquisition targets.
Arbelos, a crypto derivatives liquidity provider, announced a $28 million funding round led by Dragonfly Capital in May 2024. FalconX was one of the investors in this round, and other investors included Circle Ventures, Deribit, Paxos, and StarkWare.
Founded in 2018 and headquartered in San Mateo, California, FalconX was valued at $8 billion when it raised $150 million in 2022. The company is backed by investors including Tiger Global, GIC, and B Capital.
