Leading crypto exchange FTX is in talks with potential investors regarding a funding round worth up to $1 billion. This will allow the company’s January 2022 valuation of around $32 billion to stay in line with previous funding from earlier this year.
Exchange hopes new funding would allow FTX’s valuation to pre-recession level, people familiar with the talks Told CNBC, while the company declined to officially comment on the ongoing development. Some of the exchange’s existing investors include Singapore’s Temasek, Lightspeed Venture Partners, SoftBank’s Vision Fund 2, Insight Partners, and Tiger Global Management, among others.
Since the onset of the current downturn, FTX has attempted to position itself as a crypto market consolidator, buying distressed assets at a discount. Based in the Bahamas, the company is privately held and has helped it avoid the stock crunch suffered by several of its main competitors.
Meanwhile, earlier this month, the exchange’s CEO and co-founder, Sam Bankman-Fried (SBF) disclosed that his company has built up an estimated $1 billion war chest to continue deploying capital to bail out struggling crypto firms and buy their assets.
Although he declined to state the specific amount, the entrepreneur noted that FTX is still in its comfort zone when it comes to the amount of funds it intends to spend without emptying its coffers.
“You have the question of ‘how much do we feel comfortable deploying. To say that there’s another part of a billion here that’s fully liberated will put you in too certain a factor of the right answer,” he said.