The cryptocurrency exchange Sam-Bankman Fried’s FTX is in talks with investors to raise $1 billion in new funding as it looks to use the extra capital for financial buyouts during the crypto bear market..
According to a CNBC Wedn report citing sources close to the matter, talks are still ongoing and details may be subject to change. If true, the funding amount would keep FTX’s current valuation of about $32 billion intact..
The potential $1 billion funding round would add to the $400 million FTX raised in January, and could be a sign of investors’ strong faith in the company. even though the sector is going through a long crypto winter.
Other details are scarce at the moment. However, the sources said that some of the new funds would go towards further trading in the cryptocurrency space, which is not surprising given how active FTX and SBF’s quantitative research firm Alamada Research have been in the bear market.
FTX’s possible acquisition of troubled crypto lender Voyager Digital has been buzzing since Julyafter a joint proposal was outlined with Alameda to buy Voyager following its bankruptcy filing.
The proposal was criticized by Voyager, describing it in New York bankruptcy court filings as “a low bid masquerading as a white knight bailout” and as a move “designed to generate publicity for itself.” rather than value for Voyager customers.”
Nevertheless, FTX has continued to hunt as Voyager began the auction of its remaining assets on September 13.
According to a Tuesday report from The Wall Street Journal (WSJ), Both Binance and FTX are now said to be the top bidders for Voyager assets, with Binance’s bid said to be around $50M, with FTX’s said to be slightly below that figure. The auction will run until September 29 and the WSJ states that neither of the two offers has been accepted so far.
Earlier this month, FTX Ventures, an investment division of the firm, announced that it would acquire a 30% stake in Anthony Scaramucci’s asset management company, SkyBridge Capital, for an undisclosed amount..
In June, FTX has also reached an agreement to buy Canadian cryptocurrency platform Bitvo as part of its expansion plans in Canada.. A month earlier, FTX US also signed an agreement with the company BlockFi to provide it with a $400 million revolving line of credit and an option to buy the company for around $240 million.
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