FTX’s estimated valuation has grown to $18 billion after raising a record-setting amount of $900 million from investors like VanEck and Sequoia Capital.
Hong Kong-based cryptocurrency derivatives platform FTX has made history after raising a record $900 million in Series B funding.
According to a report by Forbes on Tuesday (July 20th, 2021), more than 60 investors were involved in the funding round in what is described as the largest fundraiser in the crypto space.
Some of the notable investors include Sequoia Capital, hedge fund representatives Izzy Englander and billionaire Alan Howard, VanEck, the Paul Tudor Jones family, Softback, and Circle.
According to FTX CEO Sam Bankman-Fried, the main objective of the event was to partner with strategic allies who could grow the company.
However, cryptocurrency exchange giant Binance, which was an earlier investor in the platform, was not involved in the present funding round. The Forbes report noted that Binance withdrew its equity stake in the company, adding that it was done on “good terms.”
“We’re still friends but we no longer have any equity relationship.” – explained the CEO of the world’s largest exchange – Changpeng Zhao (CZ).
With the new capital, FTX’s valuation has grown to $18 billion, an indication that the value of the derivatives platform has grown 15 times in one year. Back in 2020, the firm was worth $1.2 billion.
Bankman-Fried also stated that the funds would be used to make more acquisitions. As previously reported by CryptoPotato in March, the company sealed a naming rights deal to the Miami Heats arena worth $135 million for 19 years.
Earlier in July, the FTX CEO said there was a possibility the derivatives exchange could acquire Wall Street giant Goldman Sachs. Meanwhile, the company bought Blockfolio in August 2020.