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69 Investors Back Funding Round as FTX Raises $420 Million

FTX has completed its funding round earning $420 million after 69 investors were eager to pour money into the funding round.

FTX closed its funding round on Thursday in which the crypto exchange group garnered a total of $420.49 million which makes up for $25 billion of the value of the company. 

The news comes just a few months after the company announced that it had received more than $900 million in a Series B financing valued at $18 billion, despite the fact that U.S. residents are barred from trading on its main platform. Investors from all around the crypto industry have been pouring money into private startups, pushing FalconX, TradingView, and OpenSea’s prices past unicorn status.

FTX’s fresh investment round comprised 69 investors, including Tiger Global, Ribbit Capital, and BlackRock managed funds and accounts. Lightspeed Ventures, Sequoia Capital, and Sea Capital are among the other investors. In the round prior to this, the main backers were billionaires Alan Howard and Israel Englander.

The company recently revealed that Temasek, the Singapore government’s investment group, had invested in its Series B round. Sam Bankman-Fried, the CEO of FTX, is still a majority shareholder.

New investors have elected to join Bankman-cap Fried’s table as a result of the company’s recent expansion. Since May, when open interest in FTX’s Bitcoin (BTC) futures market was around $1 billion, open interest has risen to roughly $4 billion. Despite this, Binance’s open interest in futures in the last week reached roughly $5.5. Meanwhile, FTX merely represents around 37% of Coinbase’s spot crypto trading volumes.

Bankman Fried confirmed that “market share is up substantially since the start of the first fundraise.”

FKX has also expanded its offerings, introducing a platform for NFT trading and acquiring LedgerX, a futures platform, although the amount of the acquisition was not revealed.

According to Bankman-Fried, the new financing will enable FTX to purchase other companies in the near future. The former trader and billionaire from California declared that acquisitions might help the company extend its product line more swiftly, similar to how it bought LedgerX to provide crypto traders in the US with perpetual swaps.

Also read: Senate Report Proposes that Australia Amends Laws for Crypto Inclusion

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