FTX Revenue from Crypto Exchange Reportedly Increases 1000% to Over $1 Billion in 2021
Crypto exchange FTX has revealed that revenue soared more than 1,000% last year thanks to the bull market that saw Bitcoin rise to a record high of $69,000, pushing the company’s revenue from just under $90 million in 2020 to over $1 billion. next year.
Sam Bankman-Fried, FTX CEO, has confirmed a CNBC story that the company’s revenue grew by 1000% as a result of a rising crypto market and a series of acquisitions. The gain was attributed to the company’s global trading operations.
CNBC said over $272 million in operating income was added to the crypto exchange’s balance sheet in 2021, up from $14 million the previous year. FTX’s activity during the first three months of 2022 reportedly generated approximately $270 million in revenue.
Crypto Exchange FTX Aims for $1 Billion by 2022
According to forecasts, FTX can earn up to 1.1 billion dollars this year. Documents also revealed that by the end of 2021, the company had nearly $2.5 billion in cash and had a profit margin of 27%.
The outbreak of crypto winter in the second quarter did not significantly affect the cryptocurrency exchange, but instead anchored it as a lender in times of turbulence.
FTX CEO Sam Bankman-Fried. Image: TechCrunch
Last month, Bankman-Fried stated that emphasizing the recovery of customers’ money means that it is permissible to make a “moderately bad” deal when rescuing failing cryptocurrency companies, since such ventures are not always about optimizing the return on investment.
FTX was founded in 2019 by Bankman-Fried, a former quant trader on Wall Street. Initially, FTX offered futures trading in altcoins, but quickly expanded to other sectors, including spot trading. The American branch of a global stock exchange started 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 country’s largest crypto derivatives platforms, coinciding with a number of investments in 2022, including fintech company Liquid.
In addition, the audited data revealed that the exchange spent around 15% of its total revenue on advertising and marketing in the previous year. Net margin for the year was 27%, but it was about half that when expenses were excluded.
FTX aims to give US residents greater access to crypto derivatives. In addition, SBF has sought to buy underperforming digital asset companies and strengthen the organisation’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
