To acquire distressed cryptocurrency and other assets, FTX develops a $1 billion war chest #acquire #distressed #cryptocurrency #assets #FTX #develops #billion #war #chest Welcome to Americanah Blog, here is the new story we have for you today:
The CEO and cofounder of major cryptocurrency exchange FTX, Sam Bankman Fried (SBF), has announced that the company now has an estimated $1Bn war chest to continue deploying cash and bailing out distressed crypto enterprises.
“The question of “how much do you feel comfortable deploying” is the one that comes up. SBF responded to a question about how much FTX needed to deploy by saying that there is another billion here that is completely free.
In an interview with CNBC, he declined to provide a particular sum to avoid sounding too certain of the answer, but he did stress that FTX is still within its comfort zone in terms of the amount of assets it is willing to spend without emptying its coffers.
SBF emphasised that FTX was able to raise several billions of dollars in venture capital and had produced profits this year and last.
This year, the Bahamas-based exchange has facilitated rescue trades worth approximately $1 billion in the cryptocurrency market. According to Bloomberg, some of these transactions have already performed miserably, while others have shown promising returns.
The billionaire, who is now 30 years old, argues that his company’s ideology is governed by the need to protect consumers as well as to prevent contagion from spreading throughout the crypto ecosystem as a result of any asset’s collapse. He claims that this will benefit customers, rules, and the ecosystem in the long run.
Voyager Digital Ltd. obtained a $485 million loan from SBF, according to SBF. This was a potentially terrible arrangement because it wasn’t enough to save the company from declaring bankruptcy in July. BlockFi, another problematic crypto lender, was benefiting from a $400 million revolving debt bailout.
SBF is unconcerned about the potential implications, claiming that FTX is not issuing help to earn a profit on every transaction, but rather to meet the market’s capital needs.
Following a Series C investment round in January, FTX attained a market valuation of roughly $32 billion, according to CNBC. In the face of market turbulence, the exchange has not stopped seeking for methods to diversify its revenue stream from crypto fees.
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