Fireblocks, a crypto and digital asset platform, announced acquisition of First Digital, a fintech startup, for $100 million. This acquisition comes after Fireblocks received $550 million funding in a Series E round.
Fireblocks Valuation at $8 Billion Now
Fireblocks is acquiring First Digital, a stablecoins payment processing platform. This acquisition when complete will allow Fireblocks to strengthen its capabilities in the payment processing sector. A Calcalist report said Fireblocks will achieve these goals by enabling companies that offer payment services. Fireblocks will help them start accepting crypto payments and even pay out in digital currencies. Its acquisition of First Digital comes after it raised $550 million Series E round of funding. The value of its funds now stands at $1 billion while the company valuation is estimated at $8 billion.
No Further Plan to Acquire Other Companies
Michael Shaulov, the CEO of Fireblocks, informed the reasons behind this acquisition. According to him, the First’s team has come up with innovative payment, crypto and product solutions that complement Fireblock’s capabilities. First has built a similar technology platform as Fireblocks. This system quickly connects with multiple payment system providers, allowing them to start receiving cryptocurrency payments.
At present, according to Shaulov, Fireblocks does not have any further plans to acquire more companies. The focus will remain on integrating the team of First Digital that has developed capabilities in several technological sectors including the crypto space.
Ran Goldstein, the CEO of First Digital, informed about the difficulties that led his company to let go 90% of employees in 2018. The company finally became successful before the end of 2021. Many payment firms want to incorporate crypto payments into their system. Then there are crypto companies that want to go beyond simple trading, according to Goldstein.