FTX Closes $900 Million Series B Funding Round
- The funding round values the company at $18 billion.
- FTX will use the funding to expand its offering, grow its user base, and make strategic investments into other crypto businesses.
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The owner and operator of the FTX exchange, FTX Trading Ltd., has raised $900 million in a Series B funding round, the company announced in a press release on 20 July. The newly gathered funds, which now value the company at $18 billion, will be used to further expand FTX’s offering and grow its user base. A portion of the funding will be used to make strategic investments into various companies and businesses designed to grow FTX’s global presence.
The company will also expand the network of partnerships it has for its FTX Pay and FTX Liquidity program, as well as its NFT business. All of the investment processes will be led by FTX’s own venture capital team, with help from Paradigm, Ribbit, and BTIG.
Over 60 new and returning investors participated in the Series B, including Paradigm, Sequoia Capital, SoftBank, Coinbase Ventures, Sino Global Capital, VanEck, Circle, and others.
Since its Series A funding round that closed in mid-2020, FTX has seen its revenues increase 75x. Averaging over $10 billion of daily trading volume and gathering a community of over 1 million users, FTX has grown to be one of the largest cryptocurrency exchanges on the market.
Sam Bankman-Fried, the CEO of FTX, said that despite this being the company’s first large fundraiser, they’ve managed to form a hugely valuable set of partners.
“I’m excited to work with them to make FTX the best company it can be. We started out as a new derivatives exchange two years ago, and this round will help us continue to build out a bigger and broader vision for what FTX could become.”
- The bankrupt crypto lender has agreed on a settlement with its Series B holders on how to distribute the $25 million from the sale of self-custody platform GK8.
- The majority of funds, $24 million, will be allocated for legal expenses, while the remaining $1 million will be distributed between the Series B holders.
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- Unnamed sources have said that the company is currently in talks with interested parties to raise at least $100 million in a new funding round.
- The same people noted that Ledger had experienced growth in its business over the past months, as investors turn to cold storage.
- The company said the move was made “to protect and preserve assets”, and was caused by “extreme market conditions”.
- Over the last few days the company has also moved massive amounts of wBTC and ETH from the Aave platform to the FTX exchange for unknown reasons.