FTX Revenue Exploded 1,000% to Beyond $1B Last Year: Report
Sam Bankman-Fried’s crypto exchange FTX is reportedly on track to generate even more revenue this year, despite bearish markets
FTX’s Sam Bankman-Fried | Blockworks exclusive art by axel rangel
key takeaways
- Revenues at Sam Bankman-Fried’s crypto exchange reportedly exploded last year, reaching 10 figures
- FTX has sought to further solidify its position by acquiring struggling crypto companies
Crypto exchange FTX saw revenue surge 1,000% to more than $1 billion throughout last year’s bull run, according to leaked financial documents reported by CNBC.
FTX’s overall revenue reportedly jumped from $89 million to $1.02 billion in 2021, with the company adding $321 million in profits.
Roughly $272 million in operating income for 2021 was contributed to the firm’s balance sheet, up from $14 million for the year prior, according to the report.
FTX’s operations for the first quarter of this year also reportedly brought in considerable revenue, at about $270 million.
A spokesperson for FTX did not immediately return a request for comment to questions surrounding the leaked document.
This year, FTX is earmarked to generate $1.1 billion in revenue, CNBC reported citing an investor deck, meaning the exchange could be set to beat out its previous earnings despite depressed crypto prices and decreased trading activity.
FTX deploys acquisition strategy amid booming revenue
FTX has bought up various crypto companies over the past year to help position it as one of the industry’s top crypto derivatives platforms, coinciding with several investments in 2022, including fintech firm Liquid.
The US arm of the firm also acquired Commodity Futures Trading Commission-regulated derivatives platform LedgerX in October 2021. The company intends to offer US residents access to crypto derivatives.
Not to mention, FTX CEO Sam Bankman-Fried has been looking to scoop up ailing digital asset firms and consolidate his company’s position following this year’s market rout.
Late last month, the exchange made a bid for crypto lender BlockFi following revelations of an $80 million financial hole over its exposure to bankrupt hedge fund firm Three Arrows Capital.
That followed Bankman-Fried’s $250 million revolving line of credit for the beleaguered startup a week prior.
But its rapid growth has attracted regulators. Last week, the Federal Deposit Insurance Corporation (FDIC) cautioned FTX US for what it considers misleading statements over whether user assets held in the exchange’s brokerage accounts were FDIC-insured, which they are not.
Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.
