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FTX in talks to raise $1 billion at a valuation of around $32 billion


Sam Bankman-Fried speaks on stage during the first Moonlight Gala benefiting CARE – Children with Special Needs at Casa Cipriani on June 23, 2022 in New York City.

Craig Barritt | beautiful pictures

According to people familiar with the discussions, 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 intact. company at around $32 billion, according to people with knowledge of the discussions.

Sources say negotiations are ongoing and terms are subject to change. Coindesk previously reported on an upcoming investment at a fixed valuation, following FTX’s last capital raise in January. Existing investors include Singapore’s Temasek, SoftBank’s Vision Fund 2 and Tiger Global.

An FTX spokesperson declined to comment.

While its rivals and peers have stumbled during this year’s “crypto winter,” FTX has managed to bill itself as the market. unified person, swooping in to buy distressed properties at a discount. The Bahamas-based company, which is privately held, was unaffected by the drop in its shares Coinbasehas lost three-quarters of its value by 2022.

Several new capitals, on $400 million round Sources said that from January, more deal deals will be promoted. In July, FTX Signed an agreement that gives it the option to buy BlockFi by the lender and the company is in discussion for an acquisition Bithumb. FTX also offered to acquire the bankrupt crypto brokerage Voyager Digital in August but was rejected because of what it called a “low bid”.

Bloomberg reported in June that FTX also trying to buy Robin Hood heroalthough Bankman-Fried, who owns a substantial stake in the online broker, has denied any active discussions are underway.

FTX’s revenue grew more than 1,000% in 2021 to $1.02 billion from $89 million the year before, CNBC reported last month, based on a leaked investor floor. FTX had net income of $388 million last year, up from just $17 million a year earlier. The momentum continued in the first quarter, when the company posted $270 million in revenue, financial reports showed.

But that’s when the market spiked. Everything tied to cryptocurrencies veered south in the second quarter, as rising interest rates and four decades of high inflation pushed investors away from the riskiest assets. Since the end of March, bitcoin and ether are all down more than 60%, and many crypto-focused brokerages have been forced to liquidate.

Bankman-Fried, a former Wall Street quantum trader, founded FTX three years ago. As he continues to raise money and collect assets, Bankman-Fried is betting that the cryptocurrency will recover and he will be ready to take a big chunk of the profits when it does.

CLOCK: 30-year-old crypto billionaire San Bankman Fried reveals how to make his billions

30-year-old crypto billionaire Sam Bankman-Fried reveals how to make his billions



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