December 8, 2022

Sam-Bankman Fried’s crypto exchange FTX is said to be in talks with investors to raise $1 billion in new funding as it looks to use additional capital for financial acquisitions during a bear market.

as To a September 21 report from CNBC citing sources close to the matter, talks are still ongoing and details may still be subject to change. If this turns out to be true, the funding amount will maintain FTX’s current valuation of about $32 billion.

A potential funding round of $1 billion will add to the $400 million FTX raised in January, and could signal strong investor confidence in the company even though the sector is going through a long crypto winter.

Other details are scarce at this point, however, and sources said some of the new money will be earmarked for more spin-offs and dealings in the crypto space, which isn’t surprising given how active FTX and SBF’s quantum research firm Alamada Research has become. Market.

FTX’s potential acquisition of embattled crypto lender Voyager Digital has been ongoing since July, after it outlined a joint proposal with Alameda to buy Voyager after it filed for bankruptcy.

Voyager criticized the proposal, describing it in a New York bankruptcy court filing as a “low-key offer dressed as a rescue of the White Knight” and as a move “designed to generate publicity for itself rather than value for Voyager customers.”

However, FTX remained on the hunt, as Voyager began auctioning its remaining assets on September 13.

According to September 20 Report From the Wall Street Journal (WSJ), Binance and FTX are now said to be the main bidders for Voyager’s assets, with Binance said to have a bid of around $50 million and FTX just below that number. The auction runs through September 29, and the Wall Street Journal reported that no bids had been accepted at this point.

Related: Alameda Research is “happy to return” a $200 million loan to Voyager Digital

Earlier this month, FTX Ventures, the company’s investment arm, announced that it would acquire 30% of Anthony Scaramucci’s asset manager SkyBridge Capital for an undisclosed amount.

In June, FTX also entered into an agreement to purchase Canadian crypto platform Bitvo as part of broader plans to expand into Canada. A month earlier, FTX US also signed a deal with distressed lender BlockFi to provide it with a $400 million revolving credit facility and an option to purchase the company for approximately $240 million.