Crypto exchange FTX has revealed that its revenue skyrocketed over 1,000% in the past year thanks to the bull market that saw Bitcoin hit an all-time high of $69,000 and push the company’s revenue from just under $90 million in 2020 to over $1 billion. the next year.
FTX CEO Sam Bankman-Fried confirmed a CNBC story that the company’s revenue grew 1,000% due to the rising crypto market and a slew of acquisitions. The gain was attributed to the company’s global business operations.
CNBC said more than $272 million in operating revenue was added to the crypto exchange’s balance sheet in 2021, up from $14 million the previous year. FTX’s activity in the first three months of 2022 reportedly generated around $270 million in revenue.
Crypto Exchange FTX Targets $1 Billion For 2022
According to forecasts, FTX could bring in up to $1.1 billion this year. Documents also revealed that at the end of 2021, the company held nearly $2.5 billion in cash and had profit margins of 27%.
The onset of the crypto winter in the second quarter did not significantly impact the cryptocurrency exchange, but rather entrenched it as a turbulent lender.
FTX CEO Sam Bankman-Fried. Image: TechCrunch
Last month, Bankman-Fried said that a focus on getting customers’ money back means it’s okay to make a “moderately poor” deal when rescuing failing cryptocurrency companies, because many such companies do not always aim to optimize the return on investment.
FTX was founded in 2019 by Bankman-Fried, a former Wall Street quantitative trader. Initially, FTX offered futures with altcoins, but soon expanded into other industries, including spot trading. The US division of a global stock exchange launched commission-free stock trading services in the country in July this year.
SBF on a recent buying spree
FTX has acquired a number of crypto startups over the past year to position itself as one of the largest crypto derivatives platforms in the country, coinciding with a number of investments in 2022, including fintech company Liquid .
Additionally, the audited data revealed that the exchange spent around 15% of its overall revenue on advertising and marketing in the previous year. Its net margin for the year was 27%, but was about half when expenses were excluded.
FTX aims to provide US residents with better access to crypto derivatives. Additionally, SBF has sought to acquire underperforming digital asset companies and solidify its organization’s brand in the wake of this year’s market downturn.
Crypto total market cap at $998 billion on the daily chart | Source: TradingView.com Featured image from DropTown, Chart from TradingView.com