This article comes fromThe Block, Originally by Frank Chaparro
Odaily Translator |
Summary:
This article comes from
, Originally by Frank ChaparroOdaily Translator |Summary:
FTX is in the middle of a new funding round that is said to value the company at $20 billion.
According to sources, the
Capitalization Table
Still in flux.
The company could receive as much as $400 million to $1 billion in new funding.
Crypto exchange FTX is closing in on a funding round that reportedly values the company at around $20 billion, three people familiar with the matter told The Block.
It is unclear who is leading the round at this stage. The financing could bring in between $400 million and $1 billion for FTX, a person familiar with the matter said. Officials may announce the financing next month.The source added that the new infusion of funds will be used to help improve FTX’s relationships with large financial services firms and expand its reach beyond just crypto-native market players.FTX CEO Sam Bankman-Fried (SBF) told The Block that the FTX exchange earned $85 million in fee income in 2020, adding that the exchange expects to achieve $400 million in revenue in 2021.
Once FTX completes this financing, it will join the growing list of large financings in 2021. These include Paxos’ $300 million Series D round in April and BlockFi’s $350 million round in March. With their latest funding rounds, both companies are valued at more than $1 billion. This year, crypto exchange Coinbase listed on Nasdaq in a direct listing with a first-day valuation of more than $80 billion.
Open interest in the bitcoin futures market hit $3 billion earlier this year, with FTX one of the most popular trading venues. Last month, FTX facilitated $100 billion worth of futures trades.BloombergandForbesBankman-Fried, a former trader at quantitative trading firm Jane Street, is now a financial media darling and was recently
BloombergandForbesspecial report.In the 2020 U.S. presidential election, SBF has drawn widespread attention for being one of Joe Biden's top donors. Most recently, FTX made headlines for securing naming rights to the Miami Heat’s stadium, becoming the first crypto firm to secure such a deal.
, but did not disclose the exact amount.
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