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Largest crypto exchange FTX’s CEO Sam Bankman-Fried on Saturday said the company plans to expand through acquisitions to increase product offerings. FTX proposes to use proceeds worth billions from recent fundraising rounds to buy shares in other companies. The crypto giant is expanding massively in crypto as well as traditional financial markets amid uncertainty in the crypto and equities markets.
FTX Prepares for Acquisitions: Sam Bankman-Fried
Crypto exchange FTX’s CEO Sam Bankman-Fried prepares to spend billions to buy stakes in other companies for expanding its product offerings, reported Bloomberg on May 28.
FTX CEO Sam Bankman-Fried in an interview said:
“FTX is a profitable company. You can look at the amount that we’ve raised over the last year or two — it’s a few billion dollars. That gives maybe a sense of where we are in terms of cash that was explicitly viewed from a potential acquisition angle.”
The crypto giant had raised $400 million in January, bringing its valuation to over $32 billion. The company plans to use the 2 billion funds raised in the last 6 months for acquisitions. Despite the crypto market crash, FTX is on a spending spree as available capital grows.
FTX aims to acquire companies with large customer bases and teams with deep expertise in areas where FTX is lacking. For instance, the crypto giant acquired LedgerX for expanding into the U.S. crypto derivatives market. Sam Bankman-Fried has recently purchased a 7.6% stake in Robinhood, a commission-free stock and crypto trading app.
“It’s always something that we’re going to be open to and keeping our ears to the ground on. Being able to offer more products to investors, so that they don’t have to go elsewhere for those services is one of FTX’s ambitions.”
On May 19, FTX expanded into commission-free stock trading for U.S. customers, with the full rollout of services including ETFs, futures, and others in a few months. The crypto exchange eventually wants to offer an all-in-one app for financial services.
SBF Plans Expansion Amid Crypto Crisis
Sam Bankman-Fried’s FTX has strong organic growth. Meanwhile, inorganic growth through opening new locations and acquisitions picks up pace. The crypto exchange had recently entered the Australian, the UAE, and European markets. The acquisitions plan coming amid rising crypto market pressure means problems due to the increasing regulatory burden and fall in companies’ profits.
In fact, SBF is spending the most time with the SEC and the CFTC as FTX ambitions to expand market offerings.
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