FTX in Talks with Investor to Raise $1 billion in new funding

FTX, one of the largest crypto exchanges in the world, is in discussions with investors to raise $1 billion in new funding, hoping to use extra capital for financial acquisitions during the declining market.

The Funding Could Signal Strong Investor Faith 

CNBC reported Sept. 21 that the talks are still ongoing and the details could still change, citing sources close to the matter. FTX’s current valuation of $32 billion would remain intact if the funding amount is found to be true.

In addition to the $400 million FTX raised in January, the potential $1 billion funding round could signal investor optimism in the firm that has suffered through a lengthy crypto winter.

Related: FTX Sam Bankman-Fried Says They Still Have $1 Billion For Acquisitions

It is not clear what else will be done with the new funds, but the sources told that some would go towards wheeling and dealing in the crypto space, which is not surprising given the fact that FTX and SBF’s quantitative research firm Alameda Research have been active in the bear market for so long.

FTX Acquisition on Voyager Digital

FTX has been exploring the possibility of acquiring Voyager Digital since July, when the crypto lender filed for bankruptcy and the company outlined a joint proposal with Alameda.

Voyager slammed the proposal, describing it as “a low-ball bid dressed up as a white knight rescue” and a move intended to generate publicity rather than to generate value for its customers.

On September 13, Voyager began auctioning off its remaining assets, allowing FTX to remain in the hunt.

Related: Alameda To Pay Back Its $200M Loan To Voyager Digital In Crypto

Both Binance and FTX are considered the leading bidders for Voyager’s assets, with Binance’s offer around $50 million and FTX’s bid just under it, according to The Wall Street Journal (WSJ), published on Sept. 20.

The auction runs until Sept. 29, and the Wall Street Journal reported that no bid has been accepted yet.

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Jamilatul Mahmudah

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