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FTX CEO Sam Bankman-Fried. Photo: Bloomberg
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What FTX’s Latest Raise Says About the Private Market

Photo: FTX CEO Sam Bankman-Fried. Photo: Bloomberg

Another week, another fundraising from a company with FTX in its name. The Bahamian cryptocurrency exchange FTX closed a $400 million round on Monday, valuing the company at $32 billion. The announcement came just days after the company’s American affiliate, FTX US, closed a $400 million round at an $8 billion valuation.

They represent two more giant deals for the sector. My colleagues Kate, Berber, and Hannah reported the companies were seeking to raise money at these prices in December. It’s noteworthy that the valuations haven’t declined in the past two months, even as cryptocurrency prices have plummeted, signaling that venture capitalists are still bullish about the most thriving companies. 

FTX and FTX US did, however, raise less than what we initially reported the companies sought, which was up to $1.5 billion. Instead, they raised a total of $800 million. It’s unclear if this was a result of market conditions or if the companies intentionally sought less money in exchange for giving up less equity. 

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