FTX Plans to Raise More Funds Amid Challenging Market Conditions

Crypto exchange FTX, led by co-founder Sam Bankman-Fried (SBF), is in talks to raise new funds after FTX has recently provided funds across the board to struggling companies in the industry, according to a Bloomberg report. 

Earlier this year, the crypto exchange closed a $400 million fundraiser which increased their valuation to $32 billion. In addition, their U.S. subsidiary raised a separate $400 million for a valuation worth $8 billion. 

Now FTX and its U.S. subsidiary are looking to do a similar thing, the report claimed. 

FTX has expanded immensely in the last few months. In June, it launched a trading venue in Japan, providing local investors crypto services. Shortly after, FTX acquired Bitvo, a Canadian cryptocurrency platform. Bitvo stores more than 95% of customer digital assets in cold storage with Bitgo Trust Company.  

FTX was also rumored to be in talks to purchase Robinhood. Those rumors were later denied by SBF himself. 

Lastly, Alameda Research, a Hong Kong-based cryptocurrency investment firm, founded by Bankman-Fried, has also provided some liquidity into the struggling industry. Last month, Voyager announced it entered into a definitive agreement with Alameda for a $200 million cash and USDC revolver and a 15,000 BTC revolver. 

This loan injection was supposed to allow Voyager navigate the turbulent industry from a position of strength, but they shortly filed for bankruptcy after this announcement. 

Author: Tyler Irvin

Related Articles