FTX is eyeing fresh fundraising after recent acquisitions: report

By:
on Jul 20, 2022
  • FTX and FTX US are both working on new fundraising deals, Bloomberg reported on Wednesday.
  • This comes after the exchanges' major splash on loan facilities and acquisition plans during the crypto winter
  • It's estimated FTX and Alameda have put in almost $1 billion in support to troubled crypto firms.

Billionaire Sam Bankman-Fried’s FTX is seeking fresh funds, Bloomberg has reported.

That goal is also being pursued by FTX US, a subsidiary of the Bankman-Fried led crypto exchange, according to sources close to the developments.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

For FTX and FTX US, the need for fresh fundraising comes on the back of a major acquisition spree and multi-million dollar credit lines to embattled crypto firms. Some of these firms include BlockFi and Voyager Digital that secured credit lines from Bankman-Fried and Alameda Research.

In a comment on the need to help some of the struggling crypto companies, the FTX CEO said in an interview:

I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion,” he said. “Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem.”

Estimates put the total splash on acquisitions and rescue credit lines to around $1 billion.

Per the report, both firms are seeking funding to match what they raised earlier in the year. This refers to FTX’s $400 million funding at a $32 billion valuation and FTX US’ similar funding round at an $8 billion valuation.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
10/10
68% of retail CFD accounts lose money