FTX plans to raise up to $1 billion, reports say

The crypto-derivatives exchange FTX plans to raise between $400 million and $1 billion in June as part of a new funding round, according to people familiar with the matter cited by The Block.

The report says that after the funding, the company’s valuation would rise to $20 billion.

FTX plans to deploy the funds to bolster engagement with major financial-services providers outside the crypto industry, according to sources.

According to the exchange’s chief, Sam Bankman-Fried, in 2020 FTX earned fee revenue of $85 million, and it hopes to bring that figure to $400 million.

Coinbase’s market capitalization on its first day of trading exceeded $85 billion.

The Bitcoin exchange Kraken said it is considering a move to the public market in 2022. Similar plans exist for its competitor Gemini, the crypto-lending platform BlockFi and the trading app Robinhood.

In March 2021, the head of the cryptocurrency exchange Binance ruled out an IPO.

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