Bankman-Fried has assured that they will keep growing with new staff just as they did in the better market days.
Crypto exchangeFTX and its US subsidiary FTX US have reportedly planned for more acquisitions as they set up funding targets each. They recently reported to have acquired firms facing financial difficulties following the recent struggle of the crypto market. However, they are not stopping there as they have lined up several high-profile acquisitions and credit provisions to struggling companies. According to FTX co-founder Sam Bankman-Fried, the company is seeking to raise money to match the $400 million funding round in January that brought its valuation to $32 billion.
FTX US similarly raised $400 million in January to reach $8 billion in valuation. This follows its announcement in May that it plans to purchase Embed Financial Technologies in a bid to enhance the company’s stock offering. However, it later sealed a deal with BlockFi for a $400-million revolving credit facility. This, therefore, made it possible for the company to purchase the crypto lending firm.
In June, FTX made an agreement with Bitvo, a Canadian crypto firm.
“We are delighted to enter the Canadian marketplace and continue to expand FTX’s global reach. Our expansion into Canada is another step in proactively working with cryptocurrency regulators in different geographies across the globe,” said FTX CEO Sam Bankman-Fried.
It also supplied Voyager Digital, a crypto brokerage firm with a 200 million USDC loan. In addition, it provided a revolving line of credit of 15,000 Bitcoin. This was done through Alameda Research. According to reports, Bankman-Fried has through FTX and Alameda spent around $1 billion in acquisitions and financial support for crypto firms.
Unlike other exchanges, Bankman-Fried has assured that they will keep growing with new staff just as they did in the better market days. He also explained why they slowed down hiring in February. The reason, according to him, was not due to lack of funds, but to ensure that team members effectively mentor new staff before adding them.
“And because we hired carefully, we can keep growing regardless of market conditions. Because we exponentially scaled our revenue and productivity, not our expenses. But more importantly, because each person we add takes on a huge opportunity, and a huge responsibility,” he said.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
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