Singapore-based cryptocurrency FalconX valued at $8 billion

In a new funding round led by Singapore's sovereign wealth fund GIC and B Capital, FalconX was valued at $8 billion, more than double its valuation in the past 10 months, according to chief executive and founder Raghu Yarlagadda.

The funding round brought fresh capital to the company, even with an unfavorable market environment for cryptocurrencies, brought in $150 million from new and existing investors. Some investors sold an undisclosed stake in FalconX, but not all the money will go into the company's coffers.

FalconX had a value of $3.75 billion in a funding round in August.

The deal comes as FalconX plans to increase its workforce by 30% in the next few months, adding 55 new employees to the company. The company plans to expand its services to institutions from trading execution, credit and prime brokerage, using the proceeds in acquisitions, technology, and data analytics, according to Yarlagadda.

We do expect a very volatile market over the next 12 to 18 months. There are very strong opportunities for acquisitions because of the volatility, said Yarlagadda.

Besides GIC, there are private equity firm Thoma Bravo and Adams Street Capital, while existing investors Tiger Global Management, Thoma Bravo and Wellington Management poured more money in FalconX.

He said the flight to value is the theme as investors are no longer looking at growth at any cost. The investors are very specific about sustainable growth. In recent weeks, investors have been dumping risky assets in a rising interest rate environment, raising fears of a recession. The world's biggest coin, bitcoin, dropped below the $20,000 level for the first time since December 2020.

Yarlagadda said that the platform is already profitable and has reached record numbers of customers, without further disclosures.