Home CryptocurrencyAltcoin FTX is in talks with investors to raise $1 billion for further acquisitions — News

FTX is in talks with investors to raise $1 billion for further acquisitions — News

by SuperiorInvest

Sam-Bankman Fried’s FTX crypto exchange is reportedly in talks with investors to raise $1 billion in new funding as it seeks to leverage additional capital for financial acquisitions during the bear market.

According to per a Sept. 21 CNBC report, citing sources close to the matter, negotiations are still ongoing and details could change. If found to be true, the funding amount would maintain FTX’s current valuation roughly $32 billion intact.

A potential $1 billion funding round would add to the 400 million FTX raised in January and could signal strong investor confidence in the company despite the sector going through a long crypto winter.

Further details are sparse at this stage, however, sources said some of the new funds will be dedicated to more circulation and trading in the crypto space, which is not surprising given how active FTX and quantitative research firm SBF Alamada Research they were in a bear market.

FTX’s potential acquisition of troubled crypto lender Voyager Digital has been circulating since July after it outlined a joint proposal with Alameda to buy Voyager after it filed for bankruptcy.

Voyager rejected the proposal, describing it in New York bankruptcy court filings as “a low-ball bid disguised as a white knight rescue” and a move “designed to generate publicity for itself rather than value for Voyager’s customers.”

However, FTX remained on the hunt as Voyager began auction of his remaining assets on September 13.

According to September 20 message from The Wall Street Journal (WSJ), both Binance and FTX are now said to be the main bidders for Voyager’s assets, with Binance’s bid said to be around $50 million and FTX just slightly below that figure. The auction runs until September 29, and the WSJ reported that no bids had been received at this stage.

Related: Alameda Research ‘happily returns’ $200m loan to Voyager Digital

Earlier this month, FTX Ventures, the firm’s investment arm, announced it would acquire a 30% stake in Anthony Scaramucci’s asset management firm SkyBridge Capital for an undisclosed sum.

In June, FTX also entered into a purchase agreement Canadian crypto platform Bitvo as part of broader plans to expand into Canada. A month before, FTX US also signed a contract with troubled loan company BlockFi to provide it with a $400 million revolving credit facility and an option to purchase the firm for approximately $240 million.

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