Sam-Bankman cryptocurrency exchange Frieda FTX is reportedly in talks with investors to raise $1 billion in new funding as it looks to use the additional capital for financial acquisitions during the bear market.
According to a September 21 CNBC report citing sources close to the matter, negotiations are still ongoing and details are subject to change. If this turns out to be true, the amount of funding will keep FTX’s current valuation at around $32 billion.
The potential $1 billion funding round will add to the $400 million FTX raised in January and could signal strong investor confidence in the firm despite the sector going through a long crypto winter.
Other details are scarce at this stage, but sources said some of the new funds will go towards more active work in the crypto space, which is not surprising given how active FTX and SBF-owned research firm Alamada Research are. market.
FTX’s potential acquisition of beleaguered crypto lender Voyager Digital has been rumored since July, after the company laid out a joint offer with Alameda to buy Voyager after filing for bankruptcy.
The offer was criticized by Voyager, describing it in New York bankruptcy court filings as “a low offer disguised as a white knight rescue” and as a move “designed to draw attention to itself, not value to Voyager’s customers.”
However, FTX continues the hunt as Voyager began an auction of its remaining assets on September 13th.
According to The Wall Street Journal (WSJ) September 20 report, both Binance and FTX are now considered the top bidders for Voyager assets, with Binance bidding around $50 million and FTX just under that figure. The auction will run until September 29, and the WSJ stated that no bids have been accepted at this stage.
Related: Alameda Research ‘will gladly return’ $200M loan to Voyager Digital
Earlier this month, FTX Ventures, the firm’s investment arm, announced it had acquired a 30% stake in SkyBridge Capital, which manages Anthony Scaramucci’s assets, for an undisclosed amount.
In June, FTX also entered into an agreement to buy Canadian crypto platform Bitvo as part of broader plans to expand its footprint in Canada. A month earlier, FTX US also signed a deal with troubled lending firm BlockFi to provide it with a $400 million revolving line of credit and an option to buy the firm for about $240 million.