FTX is valued at $ 32 billion as blue chip investors accumulate in crypto groups

The FTX cryptocurrency exchange was valued at $ 32 billion in a new round of financing announced Monday as blue-chip investors continue to accumulate in the advertising-fueled sector.

Japan’s SoftBank and Canada’s Ontario Teachers’ Retirement Plan were among those involved in a new $ 400 million investment round for the Bermuda-based group, for the third time FTX has raised new funds in six months.

The company, run by 29-year-old crypto-billionaire Sam Bankman-Fried, was valued at $ 25 billion in a previous fundraiser announced last October. In 2020, FTX cost only $ 1.2 billion.

Bankman-Fried said that the last “financial round is an important achievement for FTX, as we raised nearly $ 2 billion in six months.”

The deal illustrates traditional investors’ insatiable appetites for companies operating in the digital asset world, with billions of dollars pouring into a sector that advocates say is a new frontier for finances, but skeptics warn it leaves many retail investors at risk of loss. of huge sums.

FTX’s valuation has surpassed more traditional financial institutions such as Germany’s Deutsche Bank, which has a market capitalization of $ 25 billion.

As of Monday’s announcement, the company was valued at $ 8 billion after raising $ 400 million last week, including funding from Singaporean government investor Temasek, SoftBank’s Vision Fund and US investment group Tiger Global.

The huge price comes despite the big drop in cryptocurrency prices in January, which led to the loss of bitcoin by 20% of its value.

The trend hit competitive markets, with Coinbase’s shares falling more than half after the company was listed on the Nasdaq in April, cutting $ 50 billion in market value. Crypto exchanges have responded with a wave of new listings of coins and tokens that could attract the attention of global financial regulators.

FTX said its new estimate reflects the company’s significant growth over the past six months, including a 60 percent increase in its users and a jump in daily volumes traded on the platform of about $ 14 billion a day. FTX is the third largest crypto exchange after Binance and Coinbase.

FTX was launched in May 2019 by Bankman-Fried, two years after he founded the crypto trading company Alameda Research. In January, the FTX added a $ 2 billion venture capital venture capital unit.

Bankman-Fried said the latest funding will support our ongoing mission to deliver innovative products and services. . . as well as expanding our global reach with additional licenses worldwide. ”

Video: Where will crypto “anarchy” end? Lex Megatrends

Weekly newsletter

For the latest news and opinions on fintech from FT’s worldwide correspondent network, subscribe to our weekly newsletter #fintechFT

Register here with one click

Source link