FTX is in discussions to raise up to $1 billion at a $32 billion value, compared to the previous round.

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According to persons with knowledge of the conversations, Sam Bankman-crypto Fried’s conglomerate FTX is in talks with investors to raise up to $1 billion in new capital, which would maintain the company’s valuation at about $32 billion.

The sources, who requested anonymity because the discussions are private, stated that negotiations are ongoing and that the parameters could alter. Following FTX’s most recent capital round in January, Coindesk previously reported on an upcoming investment with a flat valuation. Tiger Global, SoftBank’s Vision Fund 2, and Singapore’s Temasek are among the current investors.

An FTX spokesperson declined to comment.

While its rivals and peers have been pummeled in this year’s “crypto winter,” FTX has tried to bill itself as the market consolidator, swooping in to buy distressed assets at a discount. The company, which is based in the Bahamas, is privately held so it hasn’t suffered the stock meltdown of Coinbase, which lost three-quarters of its value in 2022.

Some of the fresh capital, on top of the $400 million round from January, would go to fuel more deal-making, the sources said. In July, FTX signed a deal that gives it the option to buy lender BlockFi, and the company was in discussions to acquire South Korean Bithumb. FTX also offered to buy bankrupt crypto brokerage Voyager Digital in August but was turned down for what was called a “low ball bid.”

Bloomberg reported in June that FTX was also trying to buy Robinhood, though Bankman-Fried, who owns a significant stake in the online broker, has denied any active discussions are underway.

FTX’s revenue soared more than 1,000% in 2021 to $1.02 billion from $89 million the prior year, CNBC reported last month, based on a leaked investor deck. FTX saw net income of $388 million last year, up from just $17 million a year earlier. The momentum continued in the first quarter, as the company reeled in $270 million in revenue, the financials showed.

But that’s when the market was soaring. Everything tied to crypto turned south in the second quarter, as rising interest rates and a four-decade high in inflation pushed investors out of the riskiest assets. Since the end of March, bitcoin and ether are both down by more than 60%, and numerous crypto-focused brokerages have been forced to liquidate.

Bankman-Fried, a former Wall Street quant trader, founded FTX three years ago. In continuing to raise money and snap up assets, Bankman-Fried is wagering that crypto will rebound and that he’ll be poised to capture a big chunk of profits when it does.

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