According to sources with knowledge of the discussions, Sam Bankman-Fried’s crypto conglomerate FTX is currently in talks with investors to raise up to $1 billion in new capital, which would keep the company’s valuation at approximately $32 billion. Negotiations are ongoing, and the terms may change, according to the sources who requested anonymity, as the discussions are confidential. After FTX’s last capital raise in January, Coindesk previously reported on an upcoming investment at a flat valuation. Existing investors include Singapore’s Temasek, SoftBank’s Vision Fund 2, and Tiger Global. An FTX spokesperson declined to comment.
FTX has portrayed itself as the market consolidator, swooping in to acquire distressed assets at a discount, while its competitors have been battered by this year’s “crypto winter.” As a private company, FTX has not suffered the stock meltdown of Coinbase, which has lost three-quarters of its value since June 2022. Sources indicated that a portion of the new capital, in addition to the $400 million round from January, would be used to facilitate more deal-making. FTX signed a deal in July that gives it the option to acquire South Korean lender BlockFi, and the company is in talks to acquire South Korean mobile payment service Bithumb. FTX also offered to buy bankrupt crypto brokerage Voyager Digital in August but was turned down for what was called a “low ball bid.” In June, Bloomberg reported that FTX was also interested in purchasing Robinhood, but Bankman-Fried denies any active discussions at this time.