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

Cryptocurrency exchange FTX may be in discussions with investors to raise $1 billion to increase its valuation to almost $32 billion.

CNBC reported that this billion-dollar raise would mark the second in 2022. The capital raised will go towards other deals such as purchasing other cryptocurrency exchanges that were affected by the crypto winter. The exchange has not yet made an official statement regarding these reports.

FTX has invested in more than 20 companies including Paxos and Limit Break. It has also acquired several crypto startups including Blockfolio and LedgerX. However, the exchange has attracted major investors such as Sequoia Capital, Temasek and Pantera Capital.

FTX is ready to buy more crypto companies

Bankman-Fried stated a few months back that they had to consider “stepping in” to stop companies from filing for bankruptcy. He claims they have done this “several times” in the past.

FTX plans to buy crypto companies to help its expansion. This is in addition to the good intentions of the entrepreneur. Voyager Digital was a crypto lender that filed bankruptcy in July. Binance is the competition for Voyager assets.

CryptoPotato reported that FTX, Binance and Binance offered $50 million to buy Voyager Digital assets. The auction winner will be announced on September 29.

FTX continues its expansion in the U.S. with strategic partnerships with companies like GameStop. GameStop signed a partnership with FTX today to be the preferred FTX.US retailer gaming partner.

Brett Harrison, president and CEO of FTX.US announced the news. He stated that GameStop’s high-traffic retail locations and web presence would be used “to further combine gaming and crypto enthusiasts”.

Growing during the Crypto Winter

FTX is one cryptocurrency exchange that has seen significant growth despite adverse conditions. This is partly because FTX, a private company, is not publicly traded.

FTX’s revenue increased by more than 1000% from $89 million in 2020 to $1.02 billion in 2021. It’s worth noting that FTX’s 2020 revenue was only $14 million.

However, the FTX conglomerate bought Blockfolio, a cryptocurrency company, for $150 million in order to provide trading services to American users. This was in compliance with U.S. regulations.

CNBC data shows that the company made $270 million in revenue in the first quarter 2022. This is a far better figure than many of its competitors who have suffered losses or filed for bankruptcy.

Reports: FTX Seeking $1 Billillion Financing To Raise Valuation Up to $32 Billion appeared first on CryptoPotato

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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