FTX raises $420 million in a Series B-1 funding round

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The successful financing round comes on the heels of a $900 million funding round earlier this year.

FTX, a top-ten global crypto exchange, raised slightly over $420 million in its most recent fundraising round. This comes after a $900 million increase in July.

FTX expands its holdings

FTX, one of the world’s largest cryptocurrency exchanges, has raised approximately $420 million in a Series B-1 round valued at $25 billion. FTX raised $900 million in a Series B round three months ago, valuing the company at $18 billion. Sixty-nine different investors participated in the financing round disclosed today, ranging from big investment organizations to individual billionaires to Singapore’s government-owned investment business Temasek.

FTX founder and CEO Sam Bankman-Fried, who is rumored to be the world’s richest person under 30, has indicated several potential uses for the funds, including overcoming regulatory hurdles to operate in New York next year, as well as the creation of an FTX-branded ETF. He also has plans for further purchases, which he describes as “modest to large.”

Although trading volume has risen by 75% after the $900 million fundraisings, FTX remains tiny compared to its biggest competitors, Coinbase and Binance. For example, FTX’s 24-hour trading volume is slightly under $5 billion, compared to Coinbase’s $7.3 billion, and it has about 6-7 times the daily volume of Binance.

However, the rivalry is about more than just trade volume. FTX U.S. started its NFT marketplace on Solana ten days ago. The next day, Coinbase launched its NFT marketplace, which had millions of people on the queue. Furthermore, the two companies are fighting in the domain of real-world sports: FTX was named the MLB’s official crypto partner in June, while Coinbase was named the NBA’s official crypto platform just two days ago.

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