FTX Nabs $400 Million at $32 Billion Valuation

Cryptocurrency behemoth FTX raised $400 million in a Series C funding round that propelled its valuation to a staggering $32 billion.

In his statement, CEO Sam Bankman-Fried described the mammoth fundraising effort as a "milestone achievement" for one of the largest exchanges:

Our Series C financing round represents a milestone achievement for FTX, as we raised close to $2 billion in six months.

The ballooning valuation was achieved because of SoftBank Vision Fund 2, Temasek, Paradigm, Tiger Global and other investors.

The most recent funding round also means a likely higher placement on the Bloomberg Billionaires Index for Bankman-Fried. The crypto mogul's net worth currently stands at $14.4 billion.

Global expansion

Last week, FTX US, the U.S.-based subsidiary of the cryptocurrency giant, reached an $8 billion valuation after raising $400 million.

In July, the parent exchange announced that it had raised $900 million during its Series B round that included the family of legendary American investor Paul Tudor Jones.

Launched in May 2019, FTX quickly emerged from obscurity, becoming a household name in crypto and competing with the likes of Binance and Coinbase.

Bankman-Fried says that the exchange plans to continue interacting with regulators in order to obtain more licenses and expand its global reach.

Last July, FTX reduced the maximum leverage from 100x to 20x amid heightened regulatory scrutiny.

No need for an IPO

Bankman-Fried recently told CNBC that he could see FTX going public in the future, but he also added that there was no pressing need for an IPO.

I'm not sure whether we will. I could see it happening, I could see it not happening. We don't feel like we have any particular need to do it.

Coinbase, which went public last April to great fanfare, currently has a market capitalization of $38.2 billion after its stock plunged over 60% from its peak.

Speaking of the overall state of the cryptocurrency market, Bankman-Fried also does not believe that the market will have to endure a grueling crypto winter.