FTX in talks to raise up to $1 billion at valuation of about $32 billion, in-line with prior round

Sam Bankman-Fried's crypto conglomerate FTX is successful talks with investors to rise up to $1 cardinal successful caller backing that would support the company's valuation astatine astir $32 billion, according to radical with cognition of the discussions.

Negotiations are ongoing and the presumption could change, said the sources, who asked not to beryllium named due to the fact that the talks are confidential. Coindesk antecedently reported connected a coming concern astatine level valuation, pursuing FTX's past superior rise successful January. Existing investors see Singapore's Temasek, SoftBank's Vision Fund 2 and Tiger Global.

An FTX spokesperson declined to comment.

While its rivals and peers person been pummeled successful this year's "crypto winter," FTX has tried to measure itself arsenic the marketplace consolidator, swooping successful to bargain distressed assets astatine a discount. The company, which is based successful the Bahamas, is privately held truthful it hasn't suffered the banal meltdown of Coinbase, which has mislaid three-quarters of its worth successful 2022.

Some of the caller capital, connected apical of the $400 cardinal round from January, would spell to substance much deal-making, the sources said. In July, FTX signed a woody that gives it the enactment to bargain lender BlockFi, and the institution was successful discussions to get South Korean Bithumb. FTX besides offered to bargain bankrupt crypto brokerage Voyager Digital successful August but was turned down for what was called a "low shot bid."

Bloomberg reported successful June that FTX was besides trying to buy Robinhood, though Bankman-Fried, who owns a important involvement successful the online broker, has denied immoderate progressive discussions are underway.

FTX's gross soared much than 1,000% successful 2021 to $1.02 cardinal from $89 cardinal the anterior year, CNBC reported past month, based connected a leaked capitalist deck. FTX saw nett income of $388 cardinal past year, up from conscionable $17 cardinal a twelvemonth earlier. Momentum continued successful the archetypal quarter, arsenic the institution reeled successful $270 cardinal successful revenue, the financials showed.

But that's erstwhile the marketplace was soaring. Everything tied to crypto turned southbound successful the 2nd quarter, arsenic rising involvement rates and a four-decade precocious successful ostentation pushed investors retired of the riskiest assets. Since the extremity of March, bitcoin and ether are some down by much than 60%, and galore crypto-focused brokerages person been forced to liquidate.

Bankman-Fried, a erstwhile Wall Street quant trader, founded FTX 3 years ago. In continuing to rise wealth and drawback up assets, Bankman-Fried is wagering that crypto volition rebound and that he'll beryllium poised to seizure a large chunk of profits erstwhile it does.

WATCH: 30-year-old crypto billionaire San Bankman Fried reveals however helium made his billions