September 24, 2022


Cryptocurrency exchange FTX may be in talks with several investors, who want to raise $1 billion, increasing the company’s valuation to nearly $32 billion.

According to a report by CNBC, this $1 billion raise would be the second in 2022. Some of the capital raised will be used to fuel other businesses, such as buying other cryptocurrency exchanges that have been hit by the crypto winter. So far, the stock exchange has not had an official position regarding such reports.

FTX already is invested in over 20 companies, including BetDEX, Paxos, Web3Auth and Limit Break. He has bought a number of crypto startups, including Blockfolio, LedgerX, Bitvo and Liquid Global. On the other hand, big companies like SoftBank, Temasek, Pantera Capital, Digital Currency Group and Sequoia Capital have invested in exchange.

FTX is ready to buy more crypto companies

A few months ago, Bankman-Fried said during an interview that “they have a responsibility to seriously consider stepping in” to stop the contagion of companies that have filed for bankruptcy. Something he says they’ve done “many times in the past.”

However, the entrepreneur’s good intentions aside, FTX is gearing up to buy crypto companies to help with its expansion, such as Voyager Digital, a crypto lender that filed for bankruptcy in July. FTX is competing against Binance to buy Voyager assets.

As CryptoPotato reported, FTX and Binance made offers to buy Voyager Digital’s assets worth $50 million. The winner of the auction will be announced by September 29.

In addition to these acquisitions, FTX continues to expand in the US through strategic partnerships with other companies such as GameStop, with which it signed a partnership today to become the preferred FTX.US gaming retail partner.

This was it announced from Brett Harrison, president of FTX.US, who said they will leverage GameStop’s retail locations and web presence “to further bring gaming and crypto fans together.”

It grows during the crypto winter

FTX is one of the few cryptocurrency exchanges that has managed to post significant growth throughout the year despite adverse conditions, in part because FTX is a private company that is not publicly traded.

As a result, FTX was able to increase its revenue by more than 1000% in 2021, from $89 million to more than $1.02 billion. It’s worth noting that in 2020, FTX’s revenue was only $14 million.

However, that year, FTX conglomerate bought its first cryptocurrency company “Blockfolio” for $150 million to offer in-app trading services to US users, in compliance with US regulations.

According to CNBC, which was confirmed by FTX CEO and founder Sam Bankman-Fried, the company earned about $270 million in revenue during the first quarter of 2022, unlike many competitors that reported losses or even filed for bankruptcy. bankruptcy.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off Binance Futures for the first month (conditions).

PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposits.



Source link

Leave a Reply

Your email address will not be published.