FTX Seeking $1 Billion Financing to Raise Valuation to $32 Billion, Reports

Cryptocurrency exchange FTX may be in talks with several investors, seeking to raise $1 billion, raising the company’s valuation to around $32 billion.

According to a CNBC report, this billion-dollar increase will be the second in 2022. Some of the capital raised will be used for other transactions, such as buying out other cryptocurrency exchanges that have suffered due to the crypto winter. Till now, the exchange is yet to share an official position on such reports.

FTX is already there investment At over 20 companies including BetDEX, Paxos, Web3Auth, and Limit Break. It has acquired several crypto startups including Blockfolio, LedgerX, Bitvo and Liquid Global. On the other hand, big firms like Softbank, Temasek, Pantera Capital, Digital Currency Group and Sequoia Capital invested in return

FTX is set to buy more crypto companies

A few months ago, Bankman-Fried, during an interview, said it was “their responsibility to seriously consider taking steps” to stop the contagion of companies filing for bankruptcy. Something he says they’ve done “several times in the past.”

However, beyond entrepreneurial good intentions, FTX is preparing to acquire crypto companies to aid its expansion, as in the case of Voyager Digital, a crypto lender that filed for bankruptcy in July. FTX is competing against Binance to acquire Voyager’s assets.

As reported by CryptoPotato, FTX and Binance have made a $50 million buyout bid for Voyager Digital’s assets. The winner of the auction will be announced by September 29.

In addition to this acquisition, FTX is expanding into the US through strategic partnerships with other companies such as GameStop, with which it signed a partnership today to become the preferred FTX.US retail gaming partner.

This was announcement By Brett Harrison, president of FTX.US, who said they will take advantage of GameStop’s high-traffic retail location and web presence to “bring together more gaming and crypto fans.”

Growth in crypto winter

FTX is one of the few cryptocurrency exchanges that has managed to achieve significant growth throughout the year despite adverse conditions, in part because FTX is a private company that is not publicly traded.

As a result, FTX was able to grow its revenue by more than 1000% in 2021, from $89 million to more than $1.02 billion. It is worth mentioning that FTX’s revenue in 2020 was only $14 million.

However, that year, FTX Conglomerate acquired its first cryptocurrency company “Blockfolio” for $150 million to offer app trading services to American users in compliance with US regulations.

According to CNBC data, which was confirmed by FTX CEO and founder Sam Bankman-Fried, the company earned about $270 million in the first quarter of 2022, unlike many competitors who reported losses or even filed for bankruptcy.