FTX in talks with investors to raise $1B for further acquisitions — Reports
Sam-Bankman Fried’s cryptocurrency exchange FTX is reportedly in talks with investors to raise $1 billion in new funding as it looks to use the extra money for financial acquisitions during the bear market.
according to According to a Sept. 21 report by CNBC, which cited sources close to the matter, talks are still ongoing and details could still change. If found to be true, the financing amount will keep FTX’s current valuation of about $32 billion unchanged.
The potential $1 billion round would add to the $400 million FTX raised in January and could signal strong investor confidence in the company despite the industry’s long crypto winter.
Other details are scarce at this stage, but sources say some of the new funding will be used for more trades and deals in the cryptocurrency space, which is not a big deal given that Alamada Research, the quantitative research firm for FTX and SBF, has been in a bear market. Not surprising the market.
FTX’s potential acquisition of troubled cryptocurrency lender Voyager Digital has been in the works since July, after the company and Alameda made a joint proposal to acquire Voyager after filing for bankruptcy.
The proposal was slammed by Voyager, which was described in New York bankruptcy court filings as “a low bid disguised to save the White Knight” and a move “designed to create visibility for itself, not for Voyager’s clients.” value”.
However, with Voyager starting an auction of its remaining assets on September 13, FTX has been on the lookout.
According to September 20 Report Sources from The Wall Street Journal (WSJ) say that both Binance and FTX are now the main bidders for the Voyager asset, with Binance reportedly offering around $50 million, while FTX is slightly below that figure. The auction runs until Sept. 29, and The Wall Street Journal says neither bid has been accepted so far.
related: Alameda Research is pleased to return $200 million loan to Voyager Digital
Earlier this month, the firm’s investment arm, FTX Ventures, announced it would acquire a 30 percent stake in Anthony Scaramucci’s asset manager, SkyBridge Capital, for an undisclosed amount.
In June, FTX also signed an agreement to acquire Canadian crypto platform Bitvo as part of a broader plan to expand into Canada. A month ago, FTX US also signed a deal with troubled lender BlockFi to provide it with a $400 million revolving line of credit and an option to acquire the company for about $240 million.