FTX crypto exchange is reportedly seeking another $1 billion funding round at a $32 billion valuation. This cash infusion would be roughly in-line with the company’s last capital raise in January.
CNBC is reporting that FTX is seeking another round of financing, but the company declined to comment. According to sources close to the capital raise, talks are ongoing and the negotiated valuation could change. FTX already has some big investors including Softbank’s Vision Fund 2, Tiger Global, and Singapore’s Temasek.
Bankman-Fried and FTX have made some opportunistic acquisitions during this current “crypto winter” bear market. FTX made a deal with the option to acquire BlockFi, and even tried to scoop up Voyager Digital in August but the deal was rejected as a “low ball bid.” There were even rumors that FTX may acquire the embattled Robinhood app after Bankman-Fried acquired his own personal stake in the company. FTX and GameStop even announced a partnership earlier this month.
FTX revenue topped $1 billion in 2021, but the crypto market has collapsed in 2022. Both Bitcoin and Ether are down over 60% from their all-time highs, but Bankman-Fried appears to be betting on a comeback. If cryptocurrencies do bounce back, FTX will be positioned to gain market share with this rumored cash infusion.