FTX Seeks $1 Billion Funding to Bring Valuation to $32 Billion, Reports

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Cryptocurrency exchange FTX may be in talks with multiple investors, seeking to raise $1 billion, boosting the company’s valuation to nearly $32 billion.

According to a CNBC report, this $1 billion raise would be the second of 2022. Some of the capital raised will be used to fund other transactions, such as buying other cryptocurrency exchanges that have been affected. by crypto winter. So far, the exchange has yet to share an official stance regarding these reports.

FTX already has invested in over 20 companies, including BetDEX, Paxos, Web3Auth and Limit Break. It has acquired a number of crypto startups including Block WalletLedgerX, Bitvo and World Liquid. On the other hand, large companies like SoftBank, TemasekPantera Capital, Digital Currency Group and Sequoia Capital have invested in the exchange.

FTX is ready to buy more crypto companies

A few months ago, Bankman-Fried, said in an interview that “they have a responsibility to seriously consider intervening” to stop contagion from companies filing for bankruptcy. Something he says he’s done “several times in the past.”

However, beyond the good intentions of the entrepreneur, FTX is set to acquire crypto companies to help its expansion, as is the case with Voyager Digital, a crypto lender that filed for bankruptcy in July. . FTX competes with Binance for the acquisition of Voyager’s assets.

Like CryptoPotato reported, FTX and Binance have made $50 million takeover bids for the assets of Voyager Digital. The winner of the auction will be announced by September 29.

In addition to these acquisitions, FTX continues to expand in the United States through strategic partnerships with other companies such as GameStopwith whom he has signed a partnership today to become the preferred gaming partner of FTX.US.

It was announcement by Brett Harrison, president of FTX.US, who said he would leverage GameStop’s high-traffic outlets and web presence “to further merge gaming and crypto fans.”

Growing through the crypto winter

FTX is one of the few cryptocurrency exchanges that managed to achieve 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 managed to increase your income over 1000% in 2021, from $89 million to over $1.02 billion. It is worth mentioning that in 2020, FTX’s revenue was only $14 million.

However, that year, the FTX conglomerate acquired its first cryptocurrency company “Blockfolio” for $150 million to offer the app’s trading services to US users in accordance with US regulations.

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

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