As cryptocurrency demonstrates its enduring popularity, crypto exchanges are scoring huge valuations.
FTX closed a $900 million Series B funding round on Tuesday that values the company at $18 billion. It is the largest private funding round in the crypto industry’s history.
No stranger to pooling funds, FTX ran the round itself without tagging a lead investor. The 60-plus investors included SoftBank, Coinbase Ventures, Lightspeed Venture Partners, Ribbit Capital, and Sequoia Capital.
FTX CEO Sam Bankman-Fried said the goal of the raise was to establish partnerships and gather funds for mergers and acquisitions.
The company has leaned hard into sports to grow its brand.
- FTX owns naming rights to the Miami Heat’s arena on a 19-year, $135 million deal.
- In June, FTX became the official cryptocurrency partner of Major League Baseball and the first brand to advertise on a patch worn by umpires.
- That same month, it signed up Tom Brady as a brand ambassador.
- Esports team TSM rebranded to TSM FTX after signing a $210 million partnership with the exchange.
Bitcoin and Ethereum prices have fluctuated this summer after their lofty peaks in May. Following a selloff on Monday, Bitcoin dropped below $30,000 for the first time since January.