Digital Assets: Digital Exchange FTX Lands $900M In Biggest Crypto Deal Ever

The monster round valued FTX at $18 billion.

FTX, the crypto exchange founded by Sam Bankman-Fried in May 2019, has written up the history books with its Series B raise of $900 million at a valuation of $18 billion. A clutch of top-notch investors participated in the funding, reflecting the demand for promising opportunities in the crypto space, despite recent volatility in the price of bitcoin, the leading cryptocurrency. (FT)

Over 60 investors participated in the funding, including Paradigm, Sequoia Capital, Thoma Bravo, SoftBank, Ribbit Capital, Insight Partners, Third Point, Lightspeed Venture Partners, Altimeter, BOND, NEA, Coinbase Ventures, Willoughby Capital, 40North, Senator Investment Group, Sino Global Capital, Multicoin, the Paul Tudor Jones family, Izzy Englander, Alan Howard, VanEck, Hudson River Trading, and Circle.

Use of funds

The company intends to use the financing to expand its partnerships for its FTX Pay, FTX Liquidity program & FTX NFT business lines. It will also further develop its products and for “strategic investments.”

“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,” said founder Bankman-Fried, who is also CEO.

FTX said its revenues grew over 10-fold this year and 75x since its Series A funding round closed in mid 2020.

According to FT, which quoted a company spokesperson, FTX now earns an annualized revenue of nearly $1 billion.

Currently, the crypto exchange averages $10 billion of trading volume daily and has over a million users. It is now reckoned as one of the leading digital exchanges in the world.

Key comments from investors

  • [FTX] are now leveraging the unique capabilities of global crypto rails to build the future of internet native finance – they are building the future of crypto. – Kyle Samani, managing partner at Multicoin
  • Sam and the FTX team have successfully built the most cutting-edge, sophisticated cryptocurrency exchange in the world. – Orlando Bravo, founder and managing partner at Thoma Bravo
  • As crypto becomes more ubiquitous, FTX has the opportunity to build a next generation financial services brand, spanning exchange, payments, and many other categories to come. – Nick Shalek, General Partner at Ribbit Capital
  • Crypto has the potential to disrupt our global financial system, and we believe FTX will be core to this theme for years to come. – Deven Parekh, Managing Director at Insight Partners

Related Story:  Crypto Exchange Kraken Could Value Over $10B In Potential Funding                                                 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: New Players In BNPL, And Down Under, Stocks Are Hammered
November 29, 2021     FinTech, News

Afterpay enters subscriptions market, Monzo’s Pay Later, Suncorp hops onto the BNPL bandwagon, and BNPL stocks get clobbered in Australia
Digital Assets: Grayscale’s Report Paints The Metaverse As The Next Emerging Market Investment Frontier
November 29, 2021     Digital Assets, News

A report issued by Grayscale Research, a unit of Grayscale Investments, the largest digital asset manager in the world, describes the Metaverse as a potential market opportunity worth over $1…
Artificial Intelligence: UNESCO Member States Adopt The First Ever Global Agreement On The Ethics Of Artificial Intelligence
November 29, 2021     Artificial Intelligence, News

The first ever global standard on the ethics of artificial intelligence (AI) was adopted by the member states of UNESCO at its General Conference on Tuesday. Audrey Azoulay, director-general of…
Venture Capital: Indian Fantasy Gaming Group Dream Sports Raises $840M
November 29, 2021     Latest News, News, Venture Capital

Dream Sports announced last week its raise of $840 million from investors led by Falcon Edge, DST Global, D1 Capital, Redbird Capital and Tiger Global, with the transaction valuing the…