Fireblocks, a company that helps people keep their digital assets safe, says it will buy First Digital, a company in Israel, for $100 million. There are reports that Fireblocks has bought another company, which is said to be its first. It comes less than three weeks after the company said it had raised $550 million in Series E funding.
Fireblocks has a value of $8 billion.
In a report, First Digital, a stablecoin payment platform, is set to be bought by Fireblocks for $100 million. When the deal is done, Fireblocks will be able to improve its current payment system.
Calcalist says Fireblocks will be able to do this because it will allow payment service providers and acquirers to accept crypto payments, and it will also let them make payments and get paid in crypto as well.
The custody firm bought the Israeli fintech startup a few weeks after it was reported that it had raised $550 million in funding for its next round of funding. In the last funding round, which brought the total amount of money raised to $1 billion, Fireblocks saw its value rise to $8 billion.
Fireblocks Not Focused on Further Acquisitions
This is also what the report says about Fireblocks’ CEO: Michael Shaulov, who talks about why this acquisition was made. Then, he said:
“They built one of the strongest teams when it comes to crypto, payments, and product and they will complement our capabilities. First’s significant advantage is that like Fireblocks, they built a technological platform that easily connects to the different payment providers and allows them to easily receive payments in cryptocurrencies.”
With this acquisition, Fireblocks is set to become their first business. But the company’s goal right now is not to make more acquisitions. Instead, the goal is to “work together with First [Digitalteam ]’s of people who have skills in a lot of different areas.”
Ran Goldstein, the CEO of First Digital, is quoted in a report by Calcalist. He talks about the problems that led to the company having to fire 90% of its employees in 2018. Early next year, First Digital’s risk paid off, but not until the second half of 2021.
“I think our risk paid off,” Goldstein says. “At the end of 2021, we had a lot of interest from many payment companies who wanted to add crypto payments to their services and from crypto companies who wanted to do more than just trade.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.