Digital Assets: Bankman-Fried Founded FTX, The Crypto White Knight, May Raise Funds At $32B Valuation
According to a Bloomberg report, FTX is looking for financing after it went on a shopping spree for distressed assets amidst the crypto meltdown.
Bloomberg said Sam Bankman-Fried, the CEO of crypto exchange FTX is in the market for raising fresh capital at a valuation of $32 billion, the same as it was in January. The entities conducting the raise are both FTX, and FTX.US, the American arm of the crypto exchange.
Bankman-Fried as crypto savior
Bankman-Fried has assumed the role of a crypto white knight through various transactions that supported or bankrolled troubled exchanges or brokers after the Terra, Three Arrows Capital, and Celsius Network debacles roiled market sentiment:
· Crypto lender BlockFi: US$400 million revolving credit
· Voyager Digital: US$500 million committed funding
FTX reportedly looked at the books of Celsius and refrained from a transaction due to its poor state of finances and a $2 billion hole in its balance sheet. FTX also found Celsius hard to deal with.
Doubtless, Bankman-Fried’s intentions in these deals was entirely generous-hearted and industry-supportive, but he may also be playing the classic investor: Buy when blood is on the streets!
With a billion spent on these bailouts, plus other acquisitions, FTX is evidently in need of refinancing.
In January, FTX raised $400 million at a valuation of $32 billion. FTX US, meanwhile, raised $400 million at a $8 billion valuation. The new funds will likely come at the same valuations.
Bankman-Fried himself is worth about $20 billion, according to Forbes, up from $8.7 billion in 2021.
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