October 1, 2022

Crypto exchange FTX aims to raise around $1 billion at a $32 billion valuation, a number in line with a previous funding round earlier this year.

People familiar with the matter confirmed that some of the capital raised from the new round of financing will be used to pour more money into recent acquisitions, CNBC published on Wednesday.

Interestingly, in an interview, FTX head Sam Bankman-Fried confirmed that the exchange has nearly $1 billion left for acquisitions.

“We weren’t trying to empty the coffers, so to speak. We had a couple of billions in this, and that’s roughly on par with what we raised last year, and on top of that, we were profitable,” Bankman-Fried said last week.

FTX, one of the largest crypto exchanges in the market, has been quite active in the crypto space despite the bear market. It recently launched a bidding war with Binance to buy the assets of bankrupt crypto lender Voyager Digital, which was auctioned off by a court. A decision on the bid will be announced next week.

Moreover, FTX had raised about 400 million dollars, and it was estimated at 32 billion earlier this year. This value was the same as the market capitalization of Germany’s Deutsche Boerse, but larger than the Nasdaq stock market or Twitter.

The exchange was rumored to be acquiring Robinhood, a stock trading platform that recently also listed many cryptocurrencies. Although that was not trueFTX boss Bankman-Fried acquired a 7% stake in the company.

In addition, FTX Ventures, the venture arm, acquired a 30% stake in alternative investment firm Skybridge Capital.

With multiple expansion deals in place, Bankman-Fried’s goal seems to be to continue its global expansion. The executives at FTX were also there making political engages.

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