FTX raises $400 million, reaching $32 billion valuation despite bear market

Crypto exchange FTX Trading Ltd. has raised $400 million in a Series C funding round, valuing the company, which has leaned heavily on sports and gaming, at $32 billion. The investment values the crypto exchange at the same level as Deutsche Boerse and more than Nasdaq or Twitter.

According to the company’s statement, the round included SoftBank’s Vision Fund 2, Tiger Global, Temasek, Paradigm, and Lightspeed Venture Partners. FTX will use the fresh capital for mergers, acquisitions, the development of new products, and to invest in companies in gaming, NFTs, and the metaverse.

The capital injection will help the exchange fund its global expansion and obtain additional licenses in different markets. CEO Sam Bankman-Fried has previously told CoinDesk that FTX was planning acquisitions and partnerships to enter more countries and grow its user base.

“FTX will look to continue interacting with regulators to facilitate access to digital assets in a safe and compliant manner,” Bankman-Fried said in a statement. “We look forward to working alongside our investors to achieve our mission and continue our tremendous growth throughout 2022 and beyond.”

Last October, the latest round follows a $420.7 million raise, valuing the exchange at $25 billion. FTX has raised $2 billion to date but has spent nearly $1 billion on acquisitions.

FTX has displayed a willingness to invest in sports and gaming companies to expand its reach. The exchange purchased the naming rights to FTX Arena, home of the Miami Heat, in a 19-year, $135 million deal. It also teamed up with Solana Ventures and Lightspeed Venture Partners to launch a $100 million gaming fund called GameFi. Esports team TSM rebranded to TSM FTX after signing a $210 million partnership with the exchange. In addition, it secured naming rights to the field at California’s Memorial Stadium — home of the California Golden Bears — for $17.5 million.

Earlier this month, FTX established a $2 billion fund to invest in crypto startups, focusing on gaming and security companies. The exchange could allocate all of the funds by 2023.

FTX Ventures is entirely funded by FTX and 29-year-old founder Sam Bankman-Fried.

Last week, FTX US raised $400 million in a Series A round from investors, including Japan’s SoftBank Group Corp and Singapore’s Temasek Holdings, reaching the market value at $8 billion.