Crypto exchange FTX may be in talks with several investors, aiming to raise $1 billion, raising the company’s valuation to nearly $32 billion.
According to a CNBC report, this $1 billion increase will be the second in 2022. Some of the capital raised will be used to fuel other deals, such as buying other crypto exchanges hit by the winter. So far, the exchange has not shared an official position on such reports.
FTX has already invested in more than 20 companies, including BetDEX, Paxos, Web3Auth and Limit Break. It has acquired a number of crypto startups, including Blockfolio, LedgerX, Bitvo, and Liquid Global. On the other hand, major companies such as SoftBank, Temasek, Pantera Capital, Digital Currency Group and Sequoia Capital have invested in the stock market.
FTX is ready to buy more crypto companies
Two months ago, Bankman-Fried said in an interview that “they have a responsibility to seriously consider intervention” to stem the contagion of companies filing for bankruptcy. Something he says they’ve done “many times before”.
But beyond the entrepreneur’s good intentions, FTX is preparing to acquire crypto companies to aid its expansion, as is Voyager Digital, a crypto lender that filed for bankruptcy in July. FTX competes with Binance for the acquisition of Voyager’s assets.
As reported by CryptoPotato, FTX and Binance have submitted a bid for $50 million of Voyager Digital’s assets. The auction winner will be announced by September 29th.
In addition to these acquisitions, FTX continues to expand in the United States through strategic partnerships with other companies such as GameStop, with which it has today partnered to become the preferred retail partner for games FTX.US.
This was announced by Brett Harrison, president of FTX.US, who said they would take advantage of GameStop’s high-traffic retail sites and web presence to “further unite gaming and coding enthusiasts.”
Growing During Crypto Winter
FTX is one of the few cryptocurrency exchanges that has managed to generate significant growth throughout the year despite adverse conditions, and part of this is because FTX is an unlisted private company.
As a result, FTX was able to increase its revenue by more than 1,000% in 2021, from $89 million to more than $1.02 billion. It is worth noting that in 2020, FTX revenue was only $14 million.
But that year, FTX Group acquired the first crypto company Blockfolio for $150 million to provide app trading services to US users, in compliance with US regulations.
According to CNBC data, confirmed by FTX CEO and founder Sam Bankman-Fried, the company generated revenues of about $270 million in the first quarter of 2022, unlike many competitors that reported losses or even filed for bankruptcy.
The publication that FTX is seeking $1 billion in funding to raise the valuation to $32 billion reports first appeared on CryptoPotato.