By
Chimamanda U. Martha
April 19th, 2024
The record shows that FTX had about $2.5 billion in cash at the end of 2021 and 27% profit margins.
Crypto exchange FTX sits as one of the companies that benefited the most from the 2021 crypto buzz, triggering a massive rise in the company’s revenue. At the time, many significant cryptocurrencies broke barriers and reached all-time highs. According to leaked internal documents, FTC amassed a billion dollar revenue and invested in acquisitions while expanding its global reach. The crypto exchange went deep into partnerships, extensive customer onboarding, sponsorship, and many more. All these and the crypto craze contributed to FTX growing more than 1,000% in revenue in 2021.
FTX Hit Billion Dollar Revenue in 2021
The audited financials seen by CNBC showed that the exchange’s revenue increased from $89 million to $1.02 billion. Specifically, the operating income and net income are major contributors to the FTX 2021 revenue. Operating income for FTX in 2021 surged 2,842.85% to $272 million in one year. Also, the exchange garnered $388 million in net income. The net income represents a 2,182% gain from $17 million recorded in the previous year.
After seeing its revenue spike over a thousand in 2021, FTX is not relenting. Despite the general crypto crash, the company has continued to grow since the year started. FTX is amazingly pulling in more revenue as other crypto exchanges are letting staff go to manage through the crypto storm. As a matter of fact, some crypto companies have shut down due to the bear market. Citing an investor deck, CNBC said FTX saw $270 million in revenue in the second quarter of this year. It also revealed that the crypto company was on track to attain about $1.1 billion in revenue in 2022. It remains a mystery how FTX constantly sees massive gains amid this crypto winter that has pulled many exchanges down.
Other Crypto Exchanges Struggle amid Crypto Winter
FTX, which was founded three years ago in 2019, appears to be surviving the declining crypto weather. On the other hand, its significant competitors like Binance and Coinbase (NASDAQ: COIN) are not performing so well amid the crypto winter. Coinbase, for instance, saw a 64% loss in revenue, presenting a net loss of over $1.1 billion during Q1 2021. Also, the crypto firm had to let go of some of its employees that held significant positions within the company.
Although Coinbase also saw a cash boom in 2021, the company was not doing well in 2022. Last year, the company had $7.4 billion in revenue and $3.6 billion in net income. However, revenue has dropped 64% from the year-ago quarter to $808.3 million in revenue. In addition, is a $1.1 billion net loss.
Meanwhile, the record shows that FTX had about $2.5 billion in cash at the end of 2021 and 27% profit margins. In January, the company moved to a $32 billion valuation after raising $400 million in a funding round.