Cryptocurrency exchange FTX may be in talks with several investors seeking to raise $1 billion, boosting the company’s valuation to nearly $32 billion.
According to CNBC, the $1 billion round will be the second in 2022. Some of the funds raised will be used to drive other transactions, such as buying other cryptocurrency exchanges hit by the crypto winter. So far, the exchange has not issued an official position on such reports.
FTX has invest Over 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, large companies such as SoftBank, Temasek, Pantera Capital, Digital Currency Group and Sequoia Capital Invested in communication.
FTX prepares to acquire more crypto companies
A few months ago, Bankman-Fried said in an interview that “the onus is on them to seriously consider stepping in” to stop the spread of companies filing for bankruptcy. He said they “have done it a few times in the past”.
Beyond the goodwill of entrepreneurs, however, FTX is gearing up to acquire crypto companies to help it expand, as was the case with crypto lender Voyager Digital, which filed for bankruptcy in July. FTX is competing with Binance to acquire Voyager’s assets.
As reported by CryptoPotato, FTX and Binance acquired Voyager Digital’s assets for $50 million. The winner of the auction will be announced on September 29.
In addition to these acquisitions, FTX continues to expand in the U.S. through strategic partnerships with other companies including GameStop, which today signed a partnership with GameStop as the preferred FTX.US retail gaming partner.
This is Announce Brett Harrison, president of FTX.US, said they will take advantage of GameStop’s high-traffic retail locations and online presence to “further merge gaming and crypto fans.”
Growing up in crypto winter
FTX is one of the few cryptocurrency exchanges that has managed to grow significantly throughout the year despite adverse conditions, in part because FTX is a private company that is not publicly traded.
As a result, FTX managed to grow its revenue by more than 1,000% in 2021, from $89 million to over $1.02 billion. It is worth mentioning that FTX’s revenue in 2020 was only $14 million.
That year, however, the FTX Group acquired its first cryptocurrency company, “Blockfolio,” for $150 million, to provide U.S. users with trading services on the app, in compliance with U.S. regulations.
According to CNBC data corroborated by FTX CEO and founder Sam Bankman-Fried, the company made about $270 million in revenue in the first quarter of 2022, unlike many rivals that have reported losses or even filed for bankruptcy.
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