According to a knowledgeable person on the subject, cryptocurrency exchange FTX is raising capital for a possible acquisition.
The person in question said that FTX is considering several potential acquisition candidates, some of which are companies that operate individual trading platforms. Negotiations are still in the preliminary stages. According to the person in question, FTX will be less likely to raise funds if the acquisition talks fail.
Cryptocurrency Exchange FTX Aims To Raise $32 Billion For A Potential Purchase
The person in question said that if FTX goes to raise capital, he demands the same $32 billion valuation he was given when he last raised capital earlier this year.
bitcoin and it is noteworthy that such a fundraising target exists despite the decline in crypto money prices. Shares of FTX rival Coinbase have lost nearly 70% this year.
A spokesperson for FTX declined to comment on the matter. FTX.US President Brett Harrison has previously said that the exchange is seeking potential acquisitions.
Sam Bankman-Fried, co-founder and CEO of FTX, personally bought a 7.6% stake in Robinhood, a brokerage firm with ties to retail trade.
The acquisition of a company focused on individual investors will likely bring an influx of new users to FTX, which mostly caters to experienced investors and professionals. FTX took steps towards retail investors earlier this year by launching its own stock trading product, FTX Stocks, for clients in the US.
*Not investment advice.
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