FTX looking to raise $1B in funding at $32B valuation

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Sam Bankman-Fried‘s (SBF) exchange FTX is report­ed­ly in talks with investors to raise fund­ing up to $1 Bil­lion at a val­u­a­tion of $32 billion.

Sin­ga­pore­an invest­ment com­pa­nies Temasek, Soft­Bank, and Tiger Glob­al are among exist­ing investors who agreed to fund FTX in the upcom­ing round.

The exchange giant also held a fund­ing round in Jan­u­ary and raised $400 mil­lion to reach $32 bil­lion in val­u­a­tion. Mean­while, its U.S.-based deriv­a­tive unit, FTX US, raised anoth­er $400 mil­lion for itself in the same round and increased its val­u­a­tion to $8 billion.

Investments so far

SBF has been focus­ing on invest­ments and acqui­si­tions from all angles. On May 2022, FTX pur­chased 7.6% of Robin­hood for $648.3 mil­lion. Even though it’s a small invest­ment com­pared to the scale of FTX, it still saved Robinhood’s strug­gling stocks and led to an increase of 36%.

One month lat­er, SBF lent a hand to Block­FiCryp­toSlate report­ed the news when SBF was in talks with the trou­bled exchange and two oth­er poten­tial investors. As a result of the nego­ti­a­tions, SBF loaned $400 mil­lion in cred­it to the exchange. After­ward, Block­Fi offered the option to pur­chase the entire com­pa­ny for up to $240 mil­lion depend­ing on its performance.

In July, it was revealed that South Kore­an exchange Bithumb and FTX had been nego­ti­at­ing an acqui­si­tions agree­ment for two months. Even though the nego­ti­a­tions are not con­clud­ed yet, pur­chas­ing Bithumb would serve two main goals of SBF: expand­ing over Asia and pre­vent­ing fur­ther con­ta­gion in the market.

In the mean­time, SBF-owned Alame­da Ven­tures have been con­tin­u­ing its invest­ments sep­a­rate­ly. In June, Alame­da loaned 15,000 Bit­coin (BTC) and $200 mil­lion in cash and USDC to Voy­ager Dig­i­tal in an attempt to save the due to its expo­sure to Three Arrows Cap­i­tal. How­ev­er, the attempts weren’t enough, as both enti­ties went bank­rupt in the fol­low­ing weeks.

Ivoy­agern­vest­ments before the win­ter market

In real­i­ty, merg­ers and acqui­si­tions have been a top pri­or­i­ty for FTX even before the win­ter mar­ket start­ed. In the ear­ly days of the bear mar­ket, FTX US pres­i­dent Brett Har­ri­son said that the com­pa­ny was look­ing to pur­chase local busi­ness­es to expand abroad.

He said:

“We’re doing that glob­al­ly, in places like in Japan, Aus­tralia, in Dubai, dif­fer­ent places where we’ve been able to either part­ner with local com­pa­nies or some­times do acqui­si­tions to be able to get licens­es that we need,”

Fol­low­ing their plan, FTX inked an agree­ment to acquire the Japan­ese cryp­to exchange Liq­uid on Feb­ru­ary 2022. The amount spent by FTX was not dis­closed; how­ev­er, Liq­uid was an essen­tial step for FTX’s expan­sion over Asia.

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