FTX raises $420 million to reach a $25 billion valuation
FTX has become one of the fastest-growing cryptocurrency exchanges in the world and continues to expand its features and services
FTX, one of the leading cryptocurrency exchanges in the world, has raised $420 million from investors in a latest funding round. This latest funding pushed the exchange’s total valuation to $25 billion as it continues to experience massive growth.
Led by the 29-year old Sam Bankman-Fried, FTX has become one of the top exchanges in the world. According to the Wall Street Journal, the $420 million was raised from some traditional financial institutions, including the Ontario Teachers’ Pension Plan and funds managed by BlackRock Inc.
The announcement came just three months after FTX raised $900 million and saw its valuation grow to $18 billion. The crypto exchange is now valued at $25 billion following this latest funding round. This latest development marks an impressive year for the company.
Around this time last year, FTX was valued at just about $2.5 billion. However, the crypto exchange has seen its valuation grow by 10x over the past year. In addition to some of the leading traditional financial institutions, FTX said it had a total of 69 investors, including Tiger Global, Ribbit Capital, Sea Capital, Lightspeed Ventures, Sequoia Capital and others.
Bankman-Fried revealed that FTX on-boarded new investors because they were interested in FTX’s recent growth. FTX is currently active in several parts of the cryptocurrency space. In addition to providing spot trading services, FTX also offers cryptocurrency derivative products and an NFT marketplace.
The FTX said with the new injection of funds, the crypto exchange would focus on acquisitions. By acquiring some relevant startups, FTX could quickly expand its product suite. Bankman-Fried said he expects FTX to acquire two or three companies over the coming months as they seek to grow even bigger. He expects those deals to be worth around $1 billion.
Despite its recent growth, FTX is still behind some of the leading crypto exchanges in the world, including the likes of Binance and Coinbase.