FTX.US has reached an $8 billion valuation after the company raised $400 million in a recent funding round.
FTX.US, the United States arm of the FTX cryptocurrency exchange, announced earlier today that it had raised $400 million in a latest funding round. This latest development brings the company’s total valuation to $8 billion.
The $8 billion valuation means that FTX.US is one of the most valuable private cryptocurrency companies in the world. The latest funding round was led by Temasek, the Ontario Teachers’ Pension Plan Board and SoftBank’s Vision Fund 2.
The past few months have seen venture capital firms invest in numerous cryptocurrency firms as they bet big on the fast-growing cryptocurrency industry. FTX, the parent company of FTX.US, is valued at $25 billion after it raised $900 million towards the end of last year.
FTX.US’s fundraising event comes at a time when the cryptocurrency market is struggling. The total cryptocurrency market cap has dropped from the all-time high of $3 trillion to currently stand at $1.7 trillion.
Bitcoin has lost more than 45% of its value over the past two months after reaching an all-time high of $69k in November. At press time, Bitcoin is trading above the $38k level.
Brett Harrison, president of FTX.US, stated that the recent performance experienced by the cryptocurrencies shows that the crypto market is highly volatile. He said;
“Volatility cuts both ways. With all of the large upturns that we’ve seen in crypto, we have to expect that there are going to be downturns as well. And we’re definitely in that period right now.”
Harrison added that the turbulence isn’t exclusive to cryptocurrencies, with stocks also recording huge sell-offs over the past few weeks.
FTX is the brainchild of 29-year-old crypto entrepreneur Sam Bankman-Fried. The company recently moved its headquarters to the Bahamas following tough regulatory conditions in Hong Kong.