Notwithstanding the downturn in cryptocurrency markets, digital assets platform FalconX was valued at $8 billion in a new funding round headed by Singapore’s sovereign wealth fund GIC and B Capital, according to its chief executive and founder, Raghu Yarlagadda.

Despite the negative market conditions for cryptocurrencies, this investment round brought the firm $150 million from both new and current investors. However, as other investors also sold an unknown share in FalconX, not all of the money would go to the firm’s coffers.

FalconX received a $3.75 billion valuation in a fundraising round that ended in August.

The agreement comes as FalconX prepares to hire 55 additional staff, or a 30% employment expansion, over the next several months. According to Yarlagadda, it also plans to utilize the money to extend its offerings to institutions in trade execution, credit, and prime brokerage via acquisitions, technology, and data analytics.

FalconX | LinkedIn

They anticipate a highly turbulent market over the next 12 to 18 months. However, they also see extremely good prospects for acquisitions given this volatility, according to Yarlagadda.

Along with GIC, Thoma Bravo and Adams Street Capital are new investors in the business, and Tiger Global Management, Thoma Bravo, and Wellington Management have increased their investments in FalconX.

According to Yarlagadda, the atmosphere for acquiring capital for cryptocurrency startups has become increasingly difficult. The crashes of the stablecoins TerraUSD and Luna caused unrest in the fund-raising process, which had begun months earlier.

“The big theme as we spoke with these investors is the flight to value because investors are no longer looking at growth at any cost,” he said. “Now, investors are very specific about sustainable growth. They’re looking at profitability.”

As a result of investors selling riskier assets amid increasing interest rates and recession worries, cryptocurrency prices have fallen precipitously in recent weeks. As a result, the most popular cryptocurrency in the world, bitcoin, fell below the crucial $20,000 threshold.

Without providing more information, Yarlagadda said that the site is already profitable and has attracted a record number of users.


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