The Morning Crypto

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    FTX is reportedly looking for $1 billion in financing to increase valuation to $32 billion.

    Simar Marwaha
    Sept 22, 2022 18:31
    According to reports, the bitcoin exchange FTX may be in discussions to raise $1 billion and use the money to broaden its domains.
    FTX is reportedly looking for $1 billion in financing to increase valuation to $32 billion.

    The crypto exchange FTX may be in negotiations with a number of investors to fund $1 billion, bringing the company's estimated value to close to $32 billion.

    This billion-dollar rise would be the second of 2022, according to a CNBC story. A portion of the funds obtained will be utilised to fund other transactions, such as the acquisition of more cryptocurrency exchanges that have been impacted by the crypto winter. Exchange has not yet publicly stated its position in response to such claims.

    Over 20 businesses, including BetDEX, Paxos, Web3Auth, and Limit Break, have already received funding from FTX. It has purchased many cryptocurrency firms, including Liquid Global, Blockfolio, LedgerX, and Blockfolio. On the other side, significant companies including Sequoia Capital, SoftBank, Temasek, Pantera Capital, and Digital Currency Group have invested in the exchange.

    FTX Is Ready to Acquire Additional Crypto Companies-

    Bankman-Fried stated in an interview a few months ago that "they have a responsibility to seriously consider stepping in" to curb the spread of businesses declaring bankruptcy. He claims they have carried out this action "a number of times in the past."

    FTX is ready to buy cryptocurrency businesses to support its development, as is the case with Voyager Digital, a crypto lender that declared bankruptcy in July, despite the entrepreneur's good intentions. When it comes to buying the assets of Voyager, FTX is in competition with Binance.

    According to CryptoPotato, FTX and Binance submitted buyout offers of $50 million for the assets of Voyager Digital. By September 29, 2022, the auction's winning bidder will be declared.

    In addition to these purchases, FTX is also continuing its growth in the US by forming strategic alliances with other businesses. One such partner is GameStop, with whom it just announced a collaboration to become the premier retail gaming partner for FTX.US.

    Brett Harrison, president of FTX.US, made this announcement and stated that they will take use of GameStop's popular retail locations and online presence "to further integrate gaming and crypto aficionados."

    Due in part to the fact that FTX is a private firm and not a publicly traded corporation, it is one of the few cryptocurrency exchanges that has been able to see considerable growth throughout the year despite the challenging circumstances.

    As a consequence, FTX was able to grow its revenue in 2021 from $89 million to more than $1.02 billion, a rise of more than 1000%. It is important to note that FTX's revenue in 2020 was only $14 million.

    However, the FTX conglomerate purchased "Blockfolio," its first cryptocurrency startup, for $150 million in order to provide the app's trading services to American consumers while adhering to American rules.

    Sam Bankman-Fried, CEO and creator of FTX, corroborated CNBC statistics that the company generated around $270 million in sales during the first quarter of 2022, in contrast to several of its rivals who recorded losses or even declared bankruptcy.