FTX will raise $1 billion at a flat valuation of $32 billion

FTX is reportedly in discussions with a group of heavyweights from traditional finance to raise up to $1 billion in fresh funding to promote more bargaining.

Sam Banksman-Fried

The fresh capital injection, which is still under negotiation, will put Crypto Group at the same valuation it came with in January following a $400 million funding round. At the time, the cryptocurrency exchange founded by Sam Bankman-Fried was valued at $32 billion.

Participants in the upcoming round will include existing investors such as Temasek of Singapore, Vision Fund 2 of SoftBank and Tiger Global.

Sam Bankman-Fried is trying to help the cryptocurrency industry, with several struggling firms this year announcing to pull him back from the brink.

The crypto billionaire, who has emerged as the savior of the digital asset industry, is reportedly in the news for garnering prominent names in both the crypto and brokerage industries. This includes troubled crypto lender BlockFi, South Korean exchange Bithumb and most recently Robinhood. Bankman-Fried’s quantitative research firm, Alameda Research, also came to the rescue of the embattled Voyager Digital.

According to leaked financial documents, global trading revenue generated by FTX reached $1.02 billion in 2021, a more than 10-fold increase from the $89 million recorded in 2020. Additionally, FTX’s operating income increased from $14 million during last year’s bull run to $272 million. year ago. FTX saw net income of $388 million last year, up from just $17 million in 2020.

The CNBC report also noted that the strong momentum seen in 2021 continued into the first quarter with $270 million in Q1 revenue. However, it was unclear how FTX held up in the second quarter as prices declined and crypto platforms struggled to maintain momentum during the latest “crypto winter”.

Read |  Why did Coinbase and altcoins jump on Tuesday afternoon?

By comparison, Coinbase reported a loss of $1.1 billion for the second quarter of 2022 on revenue of $803 million. The result amounted to a second consecutive quarter of losses for the publicly traded exchange, which posted revenue of $7.4 billion and a net of $3.6 billion. income last year.

FTX US also made headlines earlier this year when the exchange became an investor in the New York City-based IEX Group, the eighth-largest stock exchange operator globally. The startup staked and made a strategic investment in the “Flash Boys” exchange as it aims to leverage its expertise and infrastructure to establish a regulated marketplace for buying, selling and trading digital asset securities.

Source link