The massive exchange is raising capital in order to contemplate acquisitions. The company saw a $400 million capital raise in the Series C round in January.
The well-known cryptocurrency exchange FTX, which is run by Sam Bankman-Fried, is reportedly in talks to raise $1 billion in a fresh investment round to lift its valuation to $32 billion.
The plan is prepared to be carried out, according to a report that cited sources with inside knowledge. The cryptocurrency company was unable to comment on the alleged news, though.
In July of this year, the business was looking for investors to obtain further financing. According to sources from a few months ago, FTX was searching for a funding round to match the amount of money from its prior rounds. The suggestion came after the business reached agreements to acquire and advance rival businesses that were having difficulties in the volatile cryptocurrency sector. The notorious cryptocurrency lender Celsius was another venture that FTX tried to close, but it abandoned when it saw a $2 billion hole in the company’s balance sheet.
At a $32 billion value, the firm’s series C round of funding saw a $400 million capital increase in January. Softbank, Paradigm, Tiger Global, and other companies are also taking part in the round.
Due to the excitement, its flamboyant publicity stunts generate, FTX’s US business has prospered. The business publicly asserts that it competes with well-known brands and seasoned cryptocurrency businesses like Robinhood.
The business intends to use the incoming funds for further deal-making jobs while the time for discussions and negotiations is still ripe.
Since the beginning of the crypto winter, FTX has been on a buying binge, spending out cash on distressed assets and striking deals with struggling businesses. The Chief Executive Officer of FTX, Bankman-Fried, discusses the future of the abroad business and the many strategies the company will use to compete with its foreign rivals. By increasing its total user base to 60% since October, the company has demanded a substantial portion of the bitcoin futures trading industry, but it still lacks the volume of Binance, OKEx, and ByBit.