The FTX platform wants to raise $1 billion in new funds according to a CNBC report on September 21. It plans to use additional capital for financial acquisitions while the market is down. Such funding would keep FTX’s previously established $32 billion valuation intact. Sources familiar with the matter told CNBC that this funding will be for closing new deals.
The company is said to be in talks with investors
According to the sources, the company is in talks with investors to raise up to $1 billion in new funds. With this, the FTX platform could maintain its current valuation of $32 billion. CNBC reported the news citing people with knowledge of the matter. Nevertheless, FTX did not issue any comment. This potential $1 billion funding would be in addition to the $400 million raised by FTX in January. These rounds of funding could indicate strong investor confidence in the company despite the long bear market the sector is currently experiencing.
Negotiations remain ongoing, making terms subject to change. At this stage, we do not know any additional details. Nevertheless, the sources said that some of the new funds will be allocated to more turnover and transactions in the cryptocurrency space. Not surprising given the activity of FTX and Alamada Research, a quantitative research company of SBF.
The FTX platform multiplies acquisitions
Since the beginning of the cryptocurrency winter, FTX has multiplied the hunt for new acquisitions. Sam-Bankman’s crypto exchange bought distressed assets. It has also concluded agreements with companies in difficulty. In June, FTX reached an agreement with BlockFi. It is indeed a struggling loan company. The agreement is to provide it with a $400 million revolving credit facility. But not only that, the contract also provides an option to buy the company for approximately $240 million.
In addition, since July, a potential acquisition by Voyager Digital’s FTX platform has also been considered. On September 20, The Wall Street Journal (WSJ) reported that Binance and FTX are currently the top bidders for Voyager assets. However, FTX’s supply is slightly below Binance’s which is around $50 million.
Just this month, the company’s investment arm, FTX Ventures, announced plans to acquire a 30% stake in asset management firm SkyBridge Capital, for an undisclosed amount.
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