FTX in talks to raise funds amid spending spree to prevent contagion
FTX and its US division are reportedly seeking to raise new funds at the same valuation of January, 2022.
Sam Bankman-Fried-led FTX and its US division FTX US are in talks to raise new funds, Bloomberg News reported July 20.
The crypto exchange reportedly seeks to raise an amount at the same valuation as its Series C fundraising in January when FTX raised $400 million at a $32 billion valuation and FTX US raised $400 million at an $8 billion valuation.
Bloomberg stated that an FTX spokesperson declined to comment on the fundraising talks.
Preventing crypto contagion
Reports of FTX’s search for new funding come amid the exchange’s efforts to stop the contagion in the crypto market.
FTX US extended a $400 million credit line to BlockFi in the thick of the crypto winter. The credit facility came with an option for the exchange to purchase the distressed company for $240 million, depending on its performance.
SBF’s Alameda Ventures also gave Voyager Digital a $200 million and 15,000 Bitcoin (BTC) loan on June 22. However, it was later revealed that Alameda Research, another SBF-linked firm, owed Voyager $377 million.
Bloomberg reported that SBF committed about $1 billion to save others during the crypto market crash.