Sam Bankman-Fried is making waves in the cryptocurrency space after his FTX exchange raised a record-breaking $900 million in a private equity round.
FTX Raises $900 Million In Series B Funding
Digital currency exchange FTX has raised $900 million in a private equity round, resulting in the company having a valuation of roughly $18 billion. This latest development is astonishing as it is the highest amount ever raised in a private equity round in the history of the crypto sector.
According to a Forbes report, the investment round was led by popular investors such as Coinbase Ventures, Alan Howard, Sequoia Capital Circle, the Paul Tudor Jones family, VanEck and more.
The feat is amazing, considering the fact that FTX was valued at just $1.2 billion a year ago. It is one of the biggest winners of the recent bull market, with this funding event an indication of that point.
According to the FTX CEO, Sam Bankman-Fried, the cryptocurrency exchange would use the funds primarily for acquisition purposes. The exchange looks to acquire entities that would allow it to grow its brand and become a more valuable company. FTX is also looking to enter other markets such as trading shops, nonfungible token (NFT) platforms and non-crypto native firms.
FTT Token Up By 6% Despite Bear Market
Following this announcement, the FTX’s native coin, FTT, has been rallying. FTT is now up by over 6% despite the cryptocurrency market being in a bearish cycle at the moment. FTT is trading at $25.70 per coin, up by over 300% year-to-date.
As one of the leading crypto exchanges globally, FTX now has over one million registered users. Its users are diverse, ranging from retail investors to sophisticated day traders, family offices and experienced institutional traders.
FTX has also been making a name for itself, especially in the sporting world. A few weeks ago, it partnered with the Major League Baseball and esports organization TSM. FTX also bought the naming rights to the home arena of NBA team Miami Heat for $135 million. The deal will see FTX handle the naming for the arena for the next 19 years.