FTX Looking To Raise Capital In A New Round Of Funding

Twitter icon  •  Published 1 год назад  •  Hassan Maishera

Cryptocurrency exchange FTX and its United States arm are reportedly looking to raise capital in a new funding round.

FTX has become one of the leading cryptocurrency exchanges in the world and is seeking to cement its place as one of the top crypto companies.

The cryptocurrency exchange, which was co-founded by billionaire Sam Bankman-Fried, is reportedly planning to raise a new round of capital. FTX will reportedly reach a $32 billion valuation from the latest funding round. 

FTX and its sister company, Alameda Research, have spent hundreds of millions of dollars in recent months, acquiring some companies and bailing out others like Voyager Digital and BlockFi. 

According to sources familiar with the matter, FTX and its American entity, FTX US, are both raising fresh capital. The sources, who prefer to remain anonymous at this stage, told Bloomberg on Wednesday that the exchanges are set to raise capital from investors.

According to the report, the cryptocurrency exchange is targeting a funding round at the same valuation as its January round, when it raised $400 million at a $32 billion valuation. At the same time, FTX US raised an additional $400 million at an $8 billion valuation.

Bloomberg contacted an FTX spokesperson who declined to comment on this latest development. 

Sam Bankman-Fried, via his FTX and Alameda Research companies, committed about $1 billion during the bear market that saw more than $2 trillion wiped out from the market. 

So far, the companies have offered costly rescues to crypto lender BlockFi and crypto broker Voyager Digital as they struggle to operate amid a broad market downturn.

The report added that Bankman-Fried has also anonymously invested in a couple of other companies. He recently stated that he doesn’t mind losing money to ensure that the cryptocurrency market operates as it should. He said;

“It’s OK to do a deal that is moderately bad in bailing out a place. The bar is not: Is this a good return on investment? It’s more about maintaining the health of the wider industry.”

The FTX boss is worth around $20 billion, according to Forbes. This is up from the $8.7 billion he was worth in 2021. He founded FTX in 2019, and the cryptocurrency exchange has been growing.

FTX reviews within and outside the United States have been positive. Thus, recently pushing the exchange to surpass Coinbase as the leading cryptocurrency exchange in the US. 

The low FTX fees also mean that the cryptocurrency exchange is growing far more quickly than any other reputable crypto trading platform. 

Since the company was raised, FTX has raised $1.7 billion in seven venture capital rounds from 47 investors. 

At the moment, FTX is valued at $32 billion while FTX.US is valued at $8 billion, following the $400 million it raised earlier this year. 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.