Crypto exchange FTX has revealed that its revenue soared more than 1000% last year courtesy of a bull market that saw bitcoin climb to a record peak of $69,000, and saw the company’s revenue drop to under $90 million in 2020. increased to over 1 billion. next year.
FTX CEO Sam Bankman-Fried has confirmed to a CNBC story that the company’s earnings have increased 1,000% as a result of the growing crypto market and acquisitions. The profit was attributed to the company’s global business operations.
CNBC added that operating income of more than $272 million was added to the crypto exchange’s balance sheet in 2021, up from $14 million in the previous year. FTX’s activity reportedly generated approximately $270 million in revenue during the first three months of 2022.
Crypto Exchange FTX Targets $1 Billion for 2022
According to forecasts, FTX could generate up to $1.1 billion this year. The documents also showed that at the end of 2021, the company had about $2.5 billion in cash and a profit margin of 27%.
The start of the crypto winter in the second quarter not only affected the cryptocurrency exchange significantly, but established it as a lender in times of turmoil.
FTX CEO Sam Bankman-Fried. Image: TechCrunch
Last month, Bankman-Fried said the emphasis on recovering customers’ money meant that failing cryptocurrency companies are allowed to deal “moderately bad” while saving, as such ventures are always about optimizing return on investment. are not in.
FTX was founded in 2019 by former Wall Street quant trader Bankman-Fried. Initially, FTX offered futures trading alongside altcoins, but quickly expanded into other areas, including spot trading. The US division of a global exchange launched commission-free stock trading services in the country in July this year.
SBF on a recent shopping spree
FTX has acquired a number of crypto startups over the past year to establish itself as one of the largest crypto derivatives platforms in the country, coinciding with a number of investments in 2022 including fintech company Liquid.
Furthermore, audited data showed that the exchange spent about 15% of its total revenue on advertising and marketing in the past year. Its net margin for the year was 27%, but it was nearly half that when expenses are excluded.
FTX aims to give US residents greater access to crypto derivatives. In addition, SBF is seeking to acquire underperforming digital asset companies and strengthen its organization’s brand in the wake of this year’s market slump.
Crypto total market cap at $998 billion on the daily chart | Source: TradingView.com Featured image from DropTown, Chart from TradingView.com