Last Updated on September 22, 2022 by Bitfinsider
According to persons with knowledge of the conversations, Sam Bankman-Fried crypto’s firm FTX is in talks with investors to raise up to $1 billion in new capital, which would maintain the company’s valuation at about $32 billion.
The sources, who requested anonymity because the discussions are private, stated that negotiations are ongoing and that the parameters could alter. Tiger Global, SoftBank’s Vision Fund 2, and Singapore’s Temasek are among the current investors. A representative for FTX declined to comment.
The “crypto winter” of this year has hammered its competitors and colleagues, but FTX has tried to position itself as the market consolidator by swooping in to snap up troubled assets at a discount. The Bahamas-based company is privately held, so it hasn’t experienced the stock market collapse of Coinbase, which in 2022 lost three-quarters of its value.
In addition to the $400 million round from January, some of the new funding would be used to support additional deal-making, according to the sources. FTX inked a contract in July giving it the option to purchase the lender BlockFi, and the business was negotiating to buy the South Korean company Bithumb. In August, FTX also made a “low ball bid” to acquire the bankrupt cryptocurrency brokerage Voyager Digital, but the deal was rejected.
Bloomberg said in June that FTX was also attempting to acquire Robinhood, although Bankman-Fried, who holds a sizable investment in the online broker, has denied any ongoing negotiations.
According to a leaked investor deck, FTX’s sales increased by more than 1,000% in 2021 to $1.02 billion from $89 million the year before, according to a report by CNBC last month. Last year, FTX increased its net profits from $17 million to $388 million. The company’s financials revealed that momentum continued in the first quarter as it brought in $270 million in revenue.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.