Cryptocurrency exchange FTX, which was co-founded by billionaire Sam Bankman-Fried, is reportedly looking into raising a new round of capital after its recent spending spree added new digital assets marketplaces to the fold.
FTX and its American entity, FTX US, are both raising fresh capital, people familiar with them matter who aren’t authorized to discuss ongoing discussions told Bloomberg for its report Wednesday (July 20).
Per the report, FTX is targeting a funding round at the same valuation as its January round, when it raised $400 million at $32 billion valuation, while FTX US raised an additional $400 million at an $8 billion valuation.
A spokesperson for FTX declined to comment for Bloomberg when asked about the talks.
Bankman-Fried committed about $1 billion during the digital asset rout that saw a $2 trillion drop in market value in eight months. He added crypto lending platform BlockFi and tried to save Voyager Digital with a large loan, and has anonymously invested in a couple of other companies, the report said.
Bankman-Fried is worth $20 billion, according to Forbes, up from $8.7 billion in 2021. FTX was founded in 2019 after the boom hit and has been growing far, far more quickly than any other reputable exchange, per the report.
By the numbers, FTX has raised $1.7 billion in seven venture capital rounds from 47 investors. FTX US raised $400 million in one round this year.
PYMNTS wrote earlier this month that Bankman-Fried’s stated goal of stopping a few insolvent crypto lenders from failing is looking a bit like bargain hunting.
He had positioned himself as the industry’s lender of last resort, announcing plans to “stem contagion” from plunging cryptocurrency prices and the bankruptcy of hedge fund Three Arrows Capital, which lost a fortune in the wake of a stablecoin’s $48 billion failure in May.
Bankman-Fried offered two firms backstop lines of credit totaling $750 million, and in early July, he also said he was considering acquiring crypto mining firms.
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