After obtaining a record-breaking amount of $900 million from investors such as VanEck and Sequoia Capital, FTX‘s projected valuation has risen to $18 billion.
After obtaining a record $900 million in Series B investment, Hong Kong-based bitcoin derivatives platform FTX has created history.
According to a Forbes story published on Tuesday (July 20th, 2021), the financing round included more than 60 investors, making it the biggest fundraiser in the crypto industry.
Sequoia Capital, hedge fund executives Izzy Englander and billionaire Alan Howard, VanEck, the Paul Tudor Jones family, Softback, and Circle are noteworthy investors.
According to FTX CEO Sam Bankman-Fried, the event’s primary goal was to collaborate with key partners who might help the firm expand.
However, Binance, a cryptocurrency exchange that was an early investor in the network, was not a part of the current fundraising round. Binance removed its investment in the firm, according to Forbes, and it was done on good terms.
“We’re still friends, but we no longer have any equity relationship,” said Changpeng Zhao, CEO of the world’s largest exchange (CZ).
The new financing has increased FTX‘s valuation to $18 billion, indicating that the derivatives platform’s worth has increased 15 times in a year. The company was valued at $1.2 billion in 2020.
The cash, according to Bankman-Fried, will be utilized to pursue further purchases. In March, the business signed a $135 million 19-year naming rights contract with the Miami Heats arena.
The FTX CEO stated that Wall Street behemoth Goldman Sachs might acquire the derivatives exchange. Meanwhile, Blockfolio was purchased by the firm in August 2020.