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FTX Valued at $25B after Concluding $420M Series B-1 Funding Round

UTC by Tolu Ajiboye · 3 min read
FTX Valued at $25B after Concluding $420M Series B-1 Funding Round
Photo: Depositphotos

Three months after a $1 billion funding round, crypto exchange FTX raised $420M in another round. The funds will be used for expansion and operation improvements.

FTX Trading Ltd., a crypto exchange platform based in the Bahamas, announced it raised $420 million through a Series B-1 funding round. The recently concluded funding round increases the company’s valuation to $25 billion.

There were 69 participating investors in the round including, Temasek, Sequoia Capital, Sea Capital, IVP, ICONIQ Growth, and Tiger Global. Furthermore, the Ontario Teachers’ Pension Plan Board also invested through its Teachers’ Innovation Platform. Finally, Ribbit Capital and numerous BlackRock-managed funds and accounts rounded off the notable investor list.

FTX chief executive officer Sam Bankman-Fried weighed in on the recent development. Bankman-Fried first started by stating the reason for FTX’s creation which was to foster a holistically better financial marketplace. He went on to assert that the exchange is thriving on innovation and regular stakeholder engagement. Bankman-Fried concluded by stating that the funding rounds are giving a huge boost to FTX’s profile as a leading crypto exchange. In his own words:

“For this round, we capitalized on those strides and were able to partner with investors that prioritize positioning FTX as the world’s most transparent and compliant cryptocurrency exchange.”

FTX Conducted Another Funding Round Three Months Prior

The latest financial round by FTX is indicative of its growth and comes only three months after the exchange’s previous round. Furthermore, the company generated $1 billion from the previous round that valued it at $18 billion.

State-owned Singaporean holding company Temasek served as a key participant in the prior round that also featured over 60 investors. Participants were Softbank, Sequoia Capital, Third Point Management, Paul Tudor Jones, and Alan Howard.

FTX plans to achieve a number of goals with the funding it has received. These include expanding into new jurisdictions, improving current offerings, and establishing itself as global marketplace leader.

FTX has experienced significant growth since its $1 Billion Series B round back in July. For example, the exchange’s user base grew by 48%, while its average trading volume surged 75% and now averages a daily volume of $14 billion. FTX moved its global headquarters to the Bahamas in July as well as secured licenses under new regulatory frameworks.

The company’s American affiliate, FTX US acquired LedgerX, a CFTC-regulated digital currency futures & options exchange and clearinghouse. Yet still, the company launched a global NFT marketplace called FTX NFTs. These digital assets are available to mint, trade, auction, and authenticate based on the Solana blockchain.

FTX Is Striving to Increase Its Visibility and Global Profile

FTX is repeatedly striking up lucrative and strategic partnerships with a disparate array of organizations and entities. In September, the company announced a partnership with Mercedes-AMG Petronas Formula One (F1) team. According to Bankman-Fried, this move could attract mainstream audiences to the company’s platform. Additionally, back in April, FTX acquired the naming rights to the basketball stadium of NBA professional basketball team the Miami Heat. Pursuant to the deal, the venue now goes by the name the FTX Arena and is valid for 19 years.

It is worth noting that popular crypto exchange and rival Binance at some point in 2020 also invested in FTX. However, the Changpeng Zhao-founded company divested its shares the following year.

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