FTX exchange is said to be raising more capital to push the buyback strategy even more
FTX exchange is planning to raise more capital to get more money to boost acquisitions.
According to several reliable sources, FTX is said to be raising more capital for potential acquisition purposes, a strategy that CEO Sam Bankman-Fried has set as a key development goal for the exchange. In the near future, with the announcement that FTX will prepare to spend billions of dollars to make acquisitions.
For this funding round, FTX will focus on companies operating retail commerce platforms. Negotiations between the two sides are currently in the initial stages. However, if the acquisition negotiations fail, it will create a significant barrier that makes it less likely that FTX will successfully raise funds.
In fact, the last time FTX raised money was in January 2022 with FTX.US valued at $8 billion after a $400 million raise. Meanwhile, FTX also raised capital at the same amount, bringing the total valuation of the whole company to 32 billion USD. In terms of business development, floor revenue is said to have increased by 1,000%, more than 1 billion USD in 2021.
But because the target that FTX wants to "acquire" in its latest plan is retail trading platforms, so the share price of the famous stock and crypto brokerage platform Robinhood (HOOD) has dropped. Suddenly achieved a strong growth momentum after that with a figure of 3.55% at $10.78, despite both the US stock market just over $1.6 trillion and Bitcoin falling below the $20,000 threshold before US CPI news.
The price “interoperability” between HOOD and FTX’s development moves comes about because CEO Sam Bankman-Fried has a tie-up with the platform. He personally purchased a 7.6% stake in Robinhood in May 2022. Although there were many rumors that the CEO of FTX was planning to buy the entire company, all were quickly denied soon after.
Overall, a takeover of a company that focuses on retail investors is likely to bring in many new users to FTX, primarily serving traders and professional players. In preparation for this ambition, FTX has made significant moves in the retail sector, such as launching its own stock trading product to customers in the US.
Fox Crypto News summary
Sep 15, 2022