Sam Bankman-Fried’s Bahamian crypto trade FTX is reportedly out to lift funds once more, this time searching for buyers to pump in as a lot as $1 billion so as to preserve its present valuation which is roughly $32 billion.
That is an bold plan, given the present crypto bear market, however the billionaire CEO of FTX has damaged a number of trade norms through the contagion by happening a procuring spree when others conserved money.
Renewal of acquisition marketing campaign?
In accordance with a report by CNBC, if the continued negotiations are profitable, FTX will have the ability to retain its valuation. The contemporary capital injection can even assist bolster Sam Bankman-Fried’s means to amass extra corporations working within the crypto trade.
Contemporary funds can also assist FTX get forward within the race to amass the belongings of bankrupt crypto lender Voyager Digital. Binance presently leads the race with a bid of round $50 million, with FTX’s bid intently trailing.
Crypto’s white knight?
The 30-year-old CEO has been moderately lively through the crypto winter, endeavor a bailout marketing campaign of struggling crypto corporations that noticed names like BlockFi and Voyager Digital getting traces of credit score price a number of hundred million {dollars}.
Whereas the settlement with BlockFi offers FTX the choice to completely purchase the crippled crypto trade, preparations with bankrupt crypto lender Voyager have gone bitter.
After failing to steer Voyager’s buyers to just accept a buyout provide, FTX is now making an attempt to salvage what it could actually by means of Voyager’s public sale that may conclude on 29 September.
It’s fascinating to notice that Bankman-Fried has a private stake of seven.6% within the buying and selling platform Robinhood. He bought 56 million shares of the trade again in Might and paid near $482 million for the buy.
Brett Harrison, President of FTX United States revealed earlier this yr in Might that the agency was looking out for acquisitions given its “excellent spot” when it comes to capital at its disposal.
In June 2022, FTX introduced that it had entered into an settlement to buy Alberta-based crypto trade Bitvo, marking FTX’s foray into the Canadian markets
Information of the brand new funding spherical comes eight months after FTX raised $400 million in the beginning of the yr in Sequence C funding which gave the platform its $32 billion valuation.
On the similar time, its U.S. arm, FTX US, had its Sequence A funding spherical the place it raised $400 million at a valuation of $8 billion.
Sam Bankman-Fried’s corporations boast huge names like SoftBank, Tiger International, and Temasek amongst its buyers.