FTX Secretly Raises $1 Billion at $32 Billion Valuation

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2022-09-27 20:53:48

A disclosure from CNBC said that the FTX exchange of cryptocurrency billionaire Sam Bankman-Fried is raising an additional $ 1 billion in capital, raising the company’s valuation to $ 32 billion.

According to this source, FTX is in talks to receive more investment from potential entities, keeping the company’s valuation in line with the funding and previous acquisition statements of the Bank-Fried CEO. The negotiations are still being carried out in secret, so the terms of the negotiations are subject to change. The raised capital will be used for additional agreements.

Going back to the past, the last time FTX raised capital was in January 2022 with a Series C round bringing in $ 400 million for FTX. At this point, the company’s valuation has reached $ 32 billion.

Since the end of the crypto winter, FTX has continuously pushed through many mergers and acquisitions and is not afraid to spend money to help companies in the same industry. During this period, Sam Bankman-Fried was also known as the “crypto hero”.

During the liquidity crisis in June, while many companies one by one announced staff cuts, FTX boldly launched “a series of attacks”. The names that have received help from FTX can be mentioned as BlockFi, Bithumb Korea or Voyager Digital … This action corroborates the statement of the FTX leader “willing to spend billions of dollars on acquisitions. again.”

On the other hand, FTX is also said to be trying to “manipulate” Robinhood even though Sam Bankman-Fried holds a significant stake. Sam later denied this rumor.

Many mixed opinions have erupted when suggesting that Sam is taking advantage of the opportunity to dominate the crypto market, taking advantage of the opportunity to “score” in the eyes of regulators and disrupt the decentralization of the industry.

Compared to the same period last year, FTX’s 2022 revenue has increased by more than 1,000%, from $89 million to $1.02 billion. Core operating income – remaining revenue after deducting operating expenses and cost of goods (COGS) was $272 million, up from $14 million. Meanwhile, net income came in at $388 million, compared with just $17 million a year earlier.

In contrast, a major FTX competitor, Coinbase, has been going through turbulent times. Since the Q1/2022 financial statements with a 53% drop in net revenue, COIN’s stock price has continuously bottomed. Even to cut costs and improve profitability, Coinbase decided to lay off 1,100 employees and shut down the Coinbase Pro platform by the end of 2022. The company has announced it will continue to cut back. costs, ready to face the harsh winter in the next 12-18 months, right after recording a loss of up to $ 1.1 billion in the second quarter of 2022.

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