FTX will raise $1 billion to maintain a $32 billion valuation

FTX, the Bahamas-based cryptocurrency exchange, is in talks with investors to raise up to $1 billion in new funding that would keep the company at its $32 billion valuation, CNBC Reports.

FTX CEO Sam Bankman-Fried is reportedly negotiating the terms in secret, although according to sources familiar with the deal, the terms of the agreement are subject to change. It was initially reported that the upcoming investment was to be made as a fixed amount that would keep FTX’s valuation in line with the capital raised in January 2022, when the company raised about $400 million. FTX participated in two previous fundraising rounds in 2021, raising $420.69 million in October, and $1 billion in July.

Neither FTX nor Sam Bankman-Fried have commented publicly on how the money from the agreement will be used.

Previous investors in FTX in Singapore include Temasek, SoftBank’s Vision Fund 2, and Tiger Global.

FTX’s recent strategic moves

So far in 2022, FTX has been particularly active in acquiring the assets of embattled crypto firms. Recently, it was reported that FTX made one of the highest bids for the assets of bankrupt crypto lender Voyager Digital. The auction winner is expected to be announced at or before Voyager’s next court hearing on September 29.

In another noteworthy move this year, FTX obtained permission from Dubai to conduct digital asset trading and clearing operations in the UAE.

However, it wasn’t all sunny and rosy for FTX, and the cryptocurrency exchange recently found itself in hot water when the UK’s financial regulator, the Financial Conduct Authority (FCA), Issue a warning Consumers are against dealing with FTX. The warning letter read: “We believe this company may provide financial services or products in the UK without our permission.” She went on to say, “This company is not authorized by us and is targeting people in the UK. You won’t be able to access the Financial Ombudsman service or be protected under the FSCS, so you are not likely to get a refund if things go wrong.”

FTX has been on a mission to raise funds for some time, with the company recording explosive growth throughout the past year. In 2021, FTX saw its annual revenue increase by more than 1,000%, jumping from $89 million in 2020 to $1.02 billion in 2021.

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