FTX plans to raise $1 billion at a $32 billion valuation, according to sources

The cryptocurrency exchange FTX is planning to raise $1 billion and confirm the valuation of the previous funding round at $32 billion, according to people familiar with the matter, writes CNBC.

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Terms are not finalised, and talks continue.

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Rumors about such plans by FTX emerged in July 2022.

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For 2021, the exchange posted revenue of more than $1 billion. In the first quarter of 2022, the figure stood at $270 million, according to the publication.

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According to sources, part of the new capital, in addition to the January $400 million round, will go toward closing new deals.

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FTX chief Sam Bankman-Fried, in an interview with CNBC, hinted at a readiness to spend \”approximately a billion dollars\” on crypto companies and projects.

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In the summer, entities linked to him directed a similar amount to support the industry. Prior to that, the head of FTX promised to allocate \”billions\” for buying stakes in other companies.

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In the Voyager Digital asset auction, the most favorable bid was submitted by FTX. In June, Alameda Research provided a loan of $500 million to the crypto broker, which had not yet filed for creditor protection.

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In May, Emergent Fidelity Technologies acquired 7.6% of Robinhood. Later, hedenied speculation about buying the online broker.

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In June, FTX acquired the Canadian-regulated cryptocurrency platform Bitvo. According to reports, the exchange is in talks with several companies focusing on traditional securities, as well as considering acquiring a stake in the lending platform BlockFi.

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Also in June, FTX opened a revolving credit line of $250 million for BlockFi. Subsequently, the exchange’s US subsidiary extended the firm another revolving credit line of $400 million, obtaining an option to acquire the platform for $240 million.

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In August, Bloomberg reported Bankman-Fried’s interest in acquiring 58% of the shares of the bitcoin exchange Huobi (later the executivedenied this), a month earlier — talks about acquiring the Korean platform Bithumb.

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Last year, FTX agreed to acquire the Japanese cryptocurrency exchange Liquid and its subsidiaries. In June, it was renamed to FTX Japan, which became a unit servicing local customers.

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