Leading cryptocurrency exchange FTX is in talks with investors to raise $1 billion in new funding, adding to the $400 million it raised earlier this year.
According to a report by CNBC on Wednesday, citing people familiar with the matter, the deal, which is subject to change, would keep the company’s valuation at $32 billion. Existing investors in the round include Singapore’s Temasek, SoftBank’s Vision Fund 2, and Tiger Global.
The company will use the additional capital to “fuel more deal-making,” according to the report.
FTX Plays the Crypto “White Knight” Role
FTX has been raising its profile this year, acting as a crypto white knight by striking deals to bail out crypto-focused firms struggling to stay afloat amidst the current bear market.
In July, FTX struck a deal that will give it the option to acquire troubled crypto lending firm BlockFi, for $25 million. The report of the deal came less than a week after the crypto exchange extended a $250 million line of credit to BlockFi to deal with its liquidity crisis.
The same month, the exchange company made a joint offer with West Realm Shires Inc., the operator of FTX US, and Alameda Ventures Ltd which included buying Voyager’s assets.
The now bankrupt crypto brokerage firm rejected the offer, calling it “a low-ball bid dressed up as a white knight rescue.” However, a recent report revealed that FTX and Binance have made the top bids of roughly $50 million for Voyager’s assets with the winner set to be announced on September 29.
Recently, FTX also announced plans to scoop up a 30% stake in Anthony Scaramucci’s SkyBridge Capital.
Revenue Growth
Aside from raising fresh capital to fuel more deals, FTX also had a significant revenue surge throughout last year. According to leaked financial documents reported by CNBC, the crypto exchange’s revenue increased more than 1,000% from $89 million to $1.02 billion in 2021.
The report revealed that FTX brought in $270 million in revenue in the first quarter of 2022, and is on track to generate $1.1 billion in revenue by year-end.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!
Source: https://coinfomania.com/ftx-in-talks-to-raise-1-billion/