FTX Reportedly Seeks More Funding After June Rescue Spending

After a long month of generous bailouts, crypto exchange FTX now eyes fresh funding at a flat valuation.

As reported by Bloomberg, individuals familiar the matter say FTX and FTX US are both fundraising. They each chose to remain anonymous as they aren’t authorized to discuss the matter.

• The firm is targeting a round that is roughly equal to its $32 billion valuation from January, following its $400 million raise in January. FTX US also raised $400 million at the time, bringing its valuation to about $8 billion.
• FTX and its CEO Sam Bankman-Fried (SBF) effectively became a lender of last resort for struggling crypto firms in June.
• The exchange provided about $1 billion to companies BlockFi and Voyager but was unable to save the latter.
• In a conversation with Bloomberg on Monday, SBF said that his company was ok doing bailout deals that were “moderately bad,” or didn’t necessarily have a good ROI.
• However, his firm refused bailout deals with companies that didn’t seem transparent about the holes in their balance sheets.

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SBF said earlier this month that he thinks the crypto market may have already bottomed out and that the worst of the crypto winter has passed.