Cryptocurrency exchange FTX and its US subsidiary FTX US have reportedly set new fundraising targets after firms plan several high-profile acquisitions and lines of credit for firms.
According to a Bloomberg report on Wednesday, FTX co-founder Sam Bankman-Fried discussed raising money matching the January funding round in which the firm closed a $400 million round, bringing its valuation to $32 billion. FTX US reportedly set similar goals, raising $400 million in January to reach an $8 billion valuation.
The report follows both firms acquiring a slew of companies that appeared to be struggling financially amid the downturn in the cryptocurrency market. FTX US announced in May that it plans to acquire Embed Financial Technologies in a deal aimed at “expanding” the company’s share offering. The exchange subsequently signed a $400 million revolving line of credit deal with BlockFi that left the door open for FTX US to buy the crypto lending firm.
FTX has also made its own forays into new acquisitions, announcing in June that it had entered into an agreement to buy Canadian crypto platform Bitvo and is reportedly considering buying Robinhood. Bankman-Fried said during an interview with NPR at the time that his firms have a responsibility to assess the situation and intervene if necessary as part of efforts to “contain contagion” and prevent collapse.
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Those efforts included providing crypto brokerage firm Voyager Digital with a $200 million in coin (USDC) loan and a 15,000 bitcoin (BTC) “revolving line of credit” through Alameda – also led by Bankman-Fried.
happy to return the Voyager loan and receive our collateral whenever working for voyager
— Alameda Research (@AlamedaResearch) July 8, 2022
The FTX co-founder said in June that, unlike many other cryptocurrency exchanges, the firm will not be suspending hiring. Overall estimates show that, through Alameda and FTX, Bankman-Fried has committed about $1 billion towards acquisitions and financial support for crypto firms.
Cryptooshala has reached out to FTX but has not received a response as of press time. FTX US did not comment on the report.
Credit : cointelegraph.com