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Sam Bankman-Fried speaks on stage at the 1st Annual Moonlight Gala Benefit CARE – Children with Special Needs at Casa Cipriani on June 23, 2022 in New York City.
Craig Barritt | Getty Images
Sam Bankman-Fried’s crypto conglomerate FTX is in talks with investors to raise up to $1 billion in new funding to keep the company’s valuation at around $32 billion. , said several people familiar with the discussion.
Negotiations are ongoing and terms are subject to change, the sources said. coin desk We previously reported on upcoming investments at flat valuations following FTX’s final capital raise in January. Existing investors include Singapore’s Temasek, SoftBank’s Vision Fund 2 and Tiger Global.
An FTX spokeswoman declined to comment.
While its rivals and peers were devastated by this year’s “crypto winter,” FTX sought to establish itself as a market. Consolidator, swoops in to buy distressed assets at discounted prices.The Bahamas-based company isn’t suffering from a stock meltdown because it’s privately held coin basehas lost three-quarters of its value in 2022.
some fresh capital, on $400 million round Starting in January, it will facilitate more deals, the sources said. July, FTX signed The deal offered an option to acquire Render BlockFi, which the company had been discussing buying South Korea. BithumbFTX also made an offer to buy crypto broker Voyager Digital, which went bankrupt in August, but was turned down due to a so-called “bargain sale.”
Bloomberg announced in June that FTX was going to buy robin hoodHowever, Bankman-Fried, which owns a significant stake in the online broker, denies active discussions are underway.
FTX revenue surged over 1,000% in 2021 to $1.02 billion, up from $89 million the year before. CNBC reported Based on an investor deck leaked last month. FTX’s net income last year was $388 million, up from just $17 million the year before. Momentum continued in the first quarter, with the company’s revenue hitting his $270 million mark, financial data show.
But that was when the market was booming. Everything related to crypto turned south in the second quarter as rising interest rates and the highest inflation in 40 years pushed investors out of the riskiest assets. From the end of March Bitcoin When ether Both are down more than 60%, forcing many crypto-focused brokerages into liquidation.
Bankman-Fried, a former Wall Street quant trader, founded FTX three years ago. By continuing to raise money and acquire assets, Bankman-Fried is betting that the cryptocurrency will rebound and be poised to make big gains when it does.
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