Crypto firm FTX Trading's valuation rises to $18 billion after $900 million investment

·1 min read
Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken

(Reuters) -FTX Trading Ltd said on Tuesday its valuation had risen to $18 billion after a $900 million funding round that included SoftBank Group Corp and was one of the biggest fundraises for a crypto company.

The round saw participation from more than 60 investors, including venture capital firm Sequoia Capital, private equity giant Thoma Bravo, Daniel Loeb's Third Point, the Paul Tudor Jones family and British hedge fund manager Alan Howard.

The latest funding comes as investor sentiment towards cryptocurrencies has somewhat soured after an initial euphoria earlier this year due to mounting regulatory concerns globally.

Binance, another major cryptocurrency exchange, has faced scrutiny from regulators in Britain, Germany, Japan, and Hong Kong. The United States is also investigating the exchange, according to a media report.

The tightening scrutiny has weighed on bitcoin's price, with the most popular cryptocurrency on Tuesday falling below $30,000 for the first time in a month.

Founded and led by Sam Bankman-Fried, a 29-year-old crypto billionaire, FTX is the owner and operator of the FTX.COM cryptocurrency exchange.

The two-year-old company said it has more than 1 million users and averages about $10 billion in trading volume per day, with revenue surging more than tenfold this year.

FTX, which also counts celebrity couple Tom Brady and Gisele Bundchen among its backers, caters to a wide variety of traders, including retail investors, family offices and institutional traders.

It plans to use the fresh infusion of funds to expand its product offerings and for other investments.

Coinbase Ventures, the venture arm of recently listed cryptocurrency exchange Coinbase Global Inc, also participated in the funding round.

(Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni)

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