Cryptocurrency exchange FTX absorbed the venture capital operations of Alameda Research to combine portions of billionaire co-founder Sam Bankman-Fried’s businesses as crypto prices continue to experience an ongoing decline.
That’s according to a Thursday (Aug. 25) report by Bloomberg News, citing an interview with Alameda CEO Caroline Ellison.
The report noted that the implications of the move were small for Alameda, they’re substantial for the crypto startup sector. Alameda has backed more than 150 private companies, such as the nonfungible token marketplace Magic Eden and crypto bank Anchorage Digital.
The transaction started in January when FTX Ventures raised $2 billion, Amy Wu — who runs the fund — told Bloomberg, adding that no money changed hands between FTX and Alameda.
“The crypto exchange, the venture arm and Alameda are all operating completely as separate Entities,” Wu said.
Read more: FTX Revenue Reportedly Grew 10x in 2021
Alameda will focus chiefly on exchange and over-the-counter trading and decentralized finance, Ellison told Bloomberg. Moving its venture capital unit to FTX should not be seen as a sign of a closer relationship between the two companies, she said.
“We’re arm’s length and don’t get any different treatment from other market makers,” she said. “The Alameda team isn’t working too much on the venture side day-to-day.”
Earlier this week, PYMNTS reported that FTX saw $1 bullion in revenue in 2021, a 1,000% increase from $89 million.
See also: Today in Crypto: Voyager Seeks Buyers
According to internal financials, FTX recorded $270 million in revenue for the first quarter this year, and was likely to reach about $1.1 billion in revenue this year — although this projection was made before the “crypto winter.”
It’s been a busy time for FTX, which recently signed a deal that gave it an option to buy lender BlockFi. The company is also in talks to purchase South Korean company Bithumb and was named Thursday as a possible buyer of the lender Voyager.
In addition, FTX is considering expanding into stock trading, as well as ramping up retail trading efforts. However, the internal documents show that it’s still a place for “more sophisticated traders” who are using futures or options.
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