Sam Bankman-Fried’s cryptocurrency exchange FTX is planning to raise fresh funds after its recent acquisition spree amidst the crypto bear market, Bloomberg reported Wednesday, citing people familiar with the matter.
FTX Plans to Raise Fresh Funds
The report noted that the company’s American division, FTX.US, is also looking to raise more funds. FTX plans to raise the fund at the same valuation as its January fundraiser.
In January, the exchange reached a $32 billion valuation after raising $400 million. At the same time, FTX.US secured $400 million at an $8 billion valuation.
FTX Bails Out Crypto Firms
The news about the potential investment round comes after FTX’s recent move to bail out and acquire several struggling crypto-focused firms amid the bear market.
In June, the exchange extended a $250 million line of credit to troubled crypto lender BlockFi. A few weeks later, FTX.US rescued the crypto lending company through a $640 million deal.
During the same period, Bankman-Fried’s quantitative cryptocurrency research firm, Alameda Research, gave Voyager Digital a $500 million line of credit. FTX also held talks to buy the now-bankrupt crypto lender Celsius Network but pulled out after discovering a $2 billion hole in the latter’s balance sheet.
FTX Has “A Few Billion” to Bail Out Crypto Firms
Sam Bankman-Fried recently revealed that his exchange still has “a few billion” on hand to bail out struggling crypto firms that could further destabilize the sector. However, he noted that his company would only bail out crypto projects that are worth saving, as some have already become secretly insolvent.
Bankman-Fried noted that the goal of the support is to protect consumers’ assets and prevent liquidity crises from spreading across the sector.
Meanwhile, the FTX boss recently debunked rumors of the exchange acquiring some troubled mining companies, stating that miners are not suitable for FTX’s core strategies. However, he noted that the exchange is open to discussions with any firm, including miners.
