69 investors, including large investment funds, poured $420 million into FTX, a cryptocurrency derivatives exchange. FTX's overall market valuation jumped to $25 billion.
FTX announced the closure of a new round of funding, raising $420.69 million. The round was attended by 69 investors, including Tiger Global, Ribbit Capital, and "funds and accounts managed by BlackRock". Other members include Lightspeed Ventures, Sequoia Capital and Sea Capital, all known for their investments in IT startups.
FTX expects to use the raised funds to develop new tools and products.
FTX has already expanded its business by launching a non-fungible token trading platform as well as buying the LedgerX futures platform.
FTX completed its Series B funding round in the summer, raising over $900 million from a group of investors. Then the FTX market valuation climbed to $18 billion. Investors included companies such as FalconX, TradingView and OpenSea, as well as Singapore's state-owned investment fund Temasek.
FTX CEO and majority owner Sam Bankman-Fried said open interest in the FTX Bitcoin futures market has grown since May 2021 from $1 billion to $4 billion as of fall 2021. Bankman-Fried also said he expects FTX revenues to double over the next year from $1 billion to $2 billion. “Ideally, we will get a three or fourfold increase,” he added.
The FTX exchange was launched in 2019. It is focused on the market of cryptocurrency-based derivatives products.