The crypto firm FTX is in talks with investors in a potential $1 billion funding round as the firm seeks to raise more capital to secure acquisitions as the crypto winter persists. FTX raised $400 million in a funding round in January, showing strong investor confidence in the firm amid market doubt.
Support For FTX
Sam Bankman-Fried crypto behemoth FTX is said to be engaged in talks with investors for fresh funding round; the figure of $1 billion being suggested shows confidence in the work of the shrewd CEO’s vision. FTX has been active during the crypto winter, acquiring various businesses—most recently the Voyager Digital acquisition—and expanding its operations overseas.
According to sources close to the matter, the talks are ongoing, and the details are still subject to change. Crypto firms have suffered significantly during the bear market. But, if FTX manages to secure the $1 billion funding round, it would help to maintain the company’s current valuation of $32 billion.
The details still aren’t precise, but sources said the new funds would be put towards acquisitions for other crypto firms and projects, which aligns with FTX’s activity so far this year. Alameda Research, Bankman-Fried’s quantitive research firm Alamada Research, has been working with FTX to acquire companies this year.
FTX Looks To Takeover Voyager
FTX has been actively and publicly pursuing Voyager Digital since July when news broke about the company’s troubles. However, the company has received a lot of pushback from Voyager.
Bankman-Fried’s firm is now to participate in Voyager’s auction of its remaining assets, though Binance is now in the hunt. Binance is said to have bid $50 million, which trumped FTX’s previous undisclosed fee. The auction will run until September 29, though neither bid has been accepted.
At the start of the month, FTX Ventures, the venture wing of the company, announced that it would look to acquire 30% of Anthony Scaramucci’s asset management firm SkyBridge Capital.
In the summer, FTX agreed to purchase the Canadian crypto platform Bitvo as the first step in the company’s interest in expanding its services into the country. In June, FTX US inked a deal with crypto lending platform BlockFi, which struggled to keep up with customer yield payments, providing the company with a $400 million credit facility and an option to buy the firm for around $240 million.