Cryptocurrency exchange FTX said it had completed another funding round that values it at $32 billion. Founder and CEO Sam Bankman-Fried said that he does not believe there will be a long-term crypto bear market. Cryptocurrencies have slid sharply this month and have lost some $500 billion in market value. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Cryptocurrency exchange FTX said on Monday it had completed a new funding round that valued it at $32 billion, even as the likes of bitcoin and ether continue to fall.
FTX founder and CEO Sam Bankman-Fried separately told CNBC on Monday he wasn’t worried about the prospect of a protracted crypto bear market .
The company said in a statement that it had raised $400 million in a Series C financing round, its third such fundraising in six months. FTX said its business had reached a valuation of $32 billion.
In sharp contrast to FTX’s success, the crypto market has lost some $500 billion in value since the start of the year, led by steep losses in the likes of bitcoin and even the popular altcoins of 2021. Bitcoin down almost 50% from its all-time high in November and 18.35% year to date. Ether is down 28.99% so far in January.
This has caused fears of a more serious and prolonged crash that many refer to as a “crypto winter”, such as the period of low prices and low volatility that persisted in 2018 and 2019.
But Bankman-Fried was more optimistic. “I think we’re not entering a long term crypto winter,” he said in an interview to CNBC.
He said crypto is not unique other markets have been affected by the shift in expectations for US interest rates and inflation. Tech stocks in particular have come under fire in the past few weeks.
“There have been changes in expectations of interest rates, and that’s been moving crypto markets. But it’s been moving markets more generally as well,” he told CNBC.
FTX has raised around $1.8 billion in venture funding to date, including having raised over $420 million in October last year and $1 billion in June.
“Our Series C financing round represents a milestone achievement for FTX, as we raised close to $2 billion in six months. This round will support our continued mission of delivering innovative products and services to the marketplace,” Bankman-Fried said in a statement after the most recent funding round.
Asked about an IPO for FTX, Bankman-Fried told CNBC: “it’s something we’ve been talking about.”
FTX was founded almost three years ago and is the world’s third largest crypto exchange. Last year, it started offering a marketplace for non-fungible tokens.