A potential $1 billion round of funding would be in addition to the $400 million raised by FTX in January. The firm is said to be looking for additional capital to buy deals during the crypto winter.
Sam-Bankman Fried’s crypto currency FTX is reportedly in discussions with investors to raise $1B in new funding. This comes as the exchange seeks to use extra capital to finance acquisitions in the bear market.
According a Wedn report by CNBC, which cites sources close the matter, talks are ongoing and details could still change. The funding amount would maintain the FTX’s current value of around $32 billion.
Investors see a positive future for FTX
A potential $1 billion round of funding would be in addition to the $400 million raised by FTX in January. This could signal investor confidence in the firm, despite the sector being in a long crypto winter.
At this point, details are not available. Sources say that some of the funds will be used to trade in crypto, which is not surprising considering how active FTX, SBF’s qualitative research firm Alamada Research, have been in bear markets.
After Voyager Digital announced a proposal to Alameda for a joint purchase of Voyager, a potential FTX acquisition has been in the works since July.
FTX aims to acquire more crypto firms
Voyager slammed the proposal, calling it “a low-ball offer disguised as a white knight rescue” as well as a move that “designed to generate publicity rather than provide value for Voyager customers.”
FTX has remained on the hunt as Voyager began the sale of its remaining assetson September 13.
According a Tuesday report by The Wall Street Journal (WSJ), Binance’s offer is around \$50 million, while FTX’s bid is just under that amount. The auction will continue until September 29th. According to the WSJ, neither bid has been accepted.
Earlier this month, FTX Ventures (an investment arm of the company) announced it would purchase a 30% stake at Anthony Scaramucci’s asset management firm SkyBridge Capital, for an undisclosed sum.
FTX also signed an agreement with Bitvo to buy the Canadian crypto platform Bitvo. This was part of broader plans for Canada. FTX US had also reached a deal to purchase BlockFi , a troubled lending company, to provide it with a $400 million revolving credit facility as well as an option to purchase the firm for $240 million.