FTX To Raise $1B To Maintain Its $32B Valuation

FTX To Raise $1B To Maintain Its $32B Valuation
  • FTX is negotiating with investors asking for new rounds of funding of up to $1 billion. 
  • With its prior financing earlier this year, the company’s valuation is in-line.
  • The crypto exchange was reportedly been on an acquisition spree during the ‘crypto meltdown’.

The Bahamian cryptocurrency exchange FTX, led by its CEO Sam Bankman-Fried, was in discussion with investors to reach new funding of up to $1 billion. According to an unnamed informant, the crypto exchange aims to keep its valuation at around $32 billion. However, the people present at the discussion said the talks are still preliminary, and conditions are still unstable.

As per the article published by CNBC, the leaked confidential discussion was provided by ‘sources’, who requested to hide their identity. FTX’s current investors include Singapore’s Temasek, SoftBank’s Vision Fund 2, and Tiger Global. 

The sources said FTX’s $400 million capital round from January, along with its newly acquired capital, boosts its capability to negotiate. Also, FTX was on a mission to acquire troubled companies and assets that were greatly affected by the crypto meltdown. These include BlockFi, Bithumb, Robinhood, and Voyager Digital.

Last year, FTX’s income pumped more than 1,000%, up to a whopping $1.02 billion from $89 million in 2020, as per a leaked investor deck published by CNBC last month. The crypto exchange’s net income reached $388 million in 2021, $17 million more than its previous year. The financials also showed FTX’s big first quarter jump at around $270 million in revenue.

However, FTX’s streak ended by the second quarter as crypto was affected by high inflation and rising interest rate hikes. Consequently, this forced investors to leave risky assets, including crypto. By the start of April, both the top cryptocurrencies, Bitcoin and Ether are down by more than 60%.

Bankman-Fried, upon his efforts to continuously raise money, said crypto will bounce back. Moreover, he’ll be taking a big chunk of profits when that happened, he said.

disclaimer read more

Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.