Search Inside Bitcoins

FTX wants projects to get a $1B investment to face the crypto winter

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

FTX bankruptcy
FTX bankruptcy

Join Our Telegram channel to stay up to date on breaking news coverage

Sam-Bankman Fried’s cryptocurrency interchange FTX is supposedly in discussions with venture capitalists to generate $1 billion in additional financing, intending to use the additional cash for financial purchases during the bearish market.

Based on a Wedn document from CNBC citing sources near the issue, the discussions are still currently underway, and the specifics may change. If confirmed, the financing amount would maintain the FTX’s market price of around $32 billion.

The prospective $1 billion financing round would be in addition to the $400M FTX brought up last January and could indicate strong investor confidence in the company despite the industry’s prolonged virtual currency winter.

Other specifics are scarce at this point. According to references, a portion of the additional capital will be used for more trading and wheeling in the cryptocurrency world, which is not strange considering how engaged SBF and FTX’s quantifiable data firm Alamada Research were during the bearish trend.

A prospective FTX purchase of troubled virtual currency loan company Voyager Digital has been brewing since July when it highlighted a joint offer with Alameda to buy Voyager just after its bankruptcy case.

Voyager criticized the proposition, characterizing it as some low-ball bid disguised as a white warrior rescue or a move aimed at generating media attention instead of worth for Voyager’s clients in New York insolvency court filings.

FTX has remained on the search as Voyager began auctioning off its remaining funds on September 13.

FTX still wants to invest.

Based on a Tuesday document from Wall Street Journal (WSJ), FTX and Binance have emerged as the foremost bidders for Voyager’s investments, with Binance bidding approximately $50M and FTX bidding slightly less. The bidding is open until September 29th, and neither offer has been acknowledged yet, according to the WSJ.

FTX Ventures, the company’s investment group, declared that it planned to purchase a 30% shareholding in Anthony Scaramucci’s equity management company SkyBridge Capital for an unrevealed sum.

Last June, FTX also agreed to buy the Canadian virtual currency system Bitvo as part of its more comprehensive plans for expansion into Canada. A month earlier, FTX US agreed to offer a $400M rotating credit clinic to disturbed loaning firm BlockFi and a choice to purchase the company for around $240M.


Join Our Telegram channel to stay up to date on breaking news coverage

Read next