Figment Plans $200M Crypto Acquisitions Amid Favorable U.S. Regulations

Figment, a prominent player in blockchain staking services, is actively pursuing acquisitions in the cryptocurrency sector, aiming to spend up to $200 million. This strategic move is driven by renewed optimism in the U.S. regulatory environment, which has become more favorable for the crypto industry. The Toronto-based firm is targeting companies with a strong regional presence or those within specific blockchain ecosystems, such as Cosmos and Solana. According to CEO Lorien Gabel, the company already has term sheets out for some potential deals.

Figment's staking services involve locking tokens to secure blockchain networks and validate transactions, helping institutions earn yield. The company currently manages around $15 billion in staked assets and employs about 150 people. The recent flurry of crypto deals, including Kraken’s purchase of NinjaTrader and Ripple’s acquisition of Hidden Road, reflects a more crypto-friendly regulatory environment under the Trump administration. This environment has seen the U.S. Securities and Exchange Commission drop cases against various crypto firms and the appointment of crypto ally Paul Atkins to the commission.

Despite its acquisition strategy, Figment is not seeking additional funding and has ruled out a sale. Gabel, who co-founded the firm and has launched three prior startups, is committed to building Figment for the long term. The company has raised $165 million to date, with its latest Series C funding round led by Thoma Bravo and participation from giants including Morgan Stanley, StarkWave, and Franklin Templeton India.

Figment's push for acquisitions is part of a broader trend in the crypto industry, where companies are looking to consolidate their market positions through strategic mergers and acquisitions. This trend is driven by the need to stay competitive in a rapidly evolving market and the desire to capitalize on the growing demand for crypto services. By acquiring other companies, Figment aims to position itself as a leading player in the staking infrastructure space, driving innovation and growth within the industry.

The acquisitions are expected to focus on enhancing Figment's staking services, which involve holding and validating cryptocurrencies on behalf of clients to earn rewards. The $200 million budget for acquisitions underscores Figment's commitment to growth and its confidence in the future of the crypto market. The company's focus on staking services is particularly noteworthy, as staking has emerged as a critical component of many blockchain networks. By providing reliable and secure staking solutions, Figment aims to support the decentralization and security of these networks while generating revenue for its clients.

The acquisitions are expected to target companies that offer complementary technologies and services, allowing Figment to integrate these capabilities into its existing platform. This approach will enable the company to offer a more comprehensive suite of staking solutions, catering to a broader range of clients and use cases. The acquisitions are also likely to involve companies that specialize in blockchain development, security, and other related areas, further enhancing Figment's expertise and capabilities.