According to the CEO of crypto derivatives exchange FTX, the company still has a significant amount of cash available for acquisitions.
Sam Bankman-Fried, CEO of FTX, claims the company still has about $1 billion in cash sitting on the sidelines, ready to assist struggling crypto firms, in a new interview with CNBC’s Squawk Box.
“We did not try to empty the coffers, so to speak. We had a couple billion going into this, and it lines up roughly with the amount that we’ve raised over the last year and on top of that we’ve been profitable.”
When asked if he still had $1 billion to deploy, Bankman-Fried said,“Yeah, and you have the issue of how much we really feel comfortable deploying seeing as there’s another ballpark billion that is completely unencumbered. [That] certainly would get you within a factor of two [of] the right answer.”
Due to severe market decline this year, FTX invested in a number of cryptocurrency companies, including Anthony Scaramucci’s hedge fund SkyBridge Capital.The CEO expressed last month his wish for other businesses in the sector to step up and assist him in rescuing companies hit hard by the market downturn.
“It’s not going to be good for anyone long term if we have real pain, if we have real blowouts, and it’s not fair to customers. It’s not going to be good for regulations. It’s not going to be good for anything. From a longer-term perspective, it’s just that’s what was important for the ecosystem.It’s important for people to be able to operate in the ecosystem without being terrified that unknown unknowns were going to blow them off somehow.”