FTX is in talks to raise additional funding
The FTX cryptocurrency exchange, co-founded by billionaire Sam Bankman-Fried, is in talks to attract new financing after making purchases during the recent collapse in the digital asset market, Bloomberg reports, citing unnamed sources.
According to people familiar with the matter, who are not authorized to discuss the current arrangements, FTX and its American company FTX US are engaged in fundraising. According to insiders, FTX is planning a round with almost the same valuation as the January fundraiser. In January, FTX announced it had raised $400 million at a valuation of $32 billion, while FTX US raised $400 million separately at a valuation of $8 billion.
An FTX spokesperson declined to comment when asked about the talks.
Bankman-Fried positions himself as a lender of last resort in the crypto industry, shaken by the collapse in prices, which prompted a number of firms to seek his help. In total, he invested about $1 billion during the crisis in the digital asset market, which destroyed $2 trillion of market value in just eight months.
The push for new financing is due to the fact that FTX is concluding deals to acquire competitors struggling with the recent stress in the cryptocurrency market. Last month, crypto-credit company BlockFi announced a deal with FTX.US, which will provide the firm with a revolving credit line for $ 400 million and outline the path to acquisition.
Similarly, Sam Bankman-Fried tried to save Voyager Digital with a large loan. He said that he supported several other companies in which his participation was not made public.
The exchange also considered making a deal with troubled crypto lender Celsius, but ultimately abandoned it after FTX saw a $2 billion hole in the balance sheet of Celsius, The Block reported last month.
https://coin-signal.com/cryptonews/ftx-is-in-talks-to-raise-additional-funding/
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