FTX, the cryptocurrency exchange owned by billionaire Sam Bankman-Fried, is buying Japanese rival Liquid for an undisclosed sum.
The company said Wednesday it had entered into an agreement to acquire Liquid and all its operating subsidiaries, including Quoine Corporation and its Singapore-based unit. Quoine was one of the first crypto exchanges to obtain registration with Japan’s Financial Services Agency in 2017.
FTX, which was founded in May 2019, is worth $32 billion. A $150 million buy for bitcoin portfolio management tool Blockfolio was one of its acquisitions.
SoftBank recently led a $400 million investment round for FTX, bringing the company’s worth to $32 billion. As a result, it is one of the most valuable and fastest-growing enterprises in the crypto market.
Sam Bankman-Fried, hopes to one day purchase Goldman Sachs and CME Group, two traditional financial behemoths. He previously told The Financial Times that once the company surpasses rivals Coinbase and Binance, acquiring Goldman Sachs and CME is a distinct possibility.
In the crypto world, mergers and acquisitions (M&A) are on the rise. Last year, crypto companies purchased 201 businesses, compared to 85 in 2020. According to The Block Research, the value of cryptocurrency mergers and acquisitions reached $6 billion last year. The following are the most significant crypto mergers and acquisitions, the most of which occurred last year.
It’s already partnered with Coachella for this year. All of this indicates a planned move to expand the company’s consumer base in the United States.
FTX, which offers derivatives products as well as spot trading, is one of the world’s largest digital currency exchanges. Once an obscure name, the firm has become a key player in the nascent market, rivaling the likes of Coinbase and Binance.
The company doesn’t offer to trade in the United States. That function is provided by FTX U.S., its sister exchange. Last week, FTX U.S. announced a $400 million investment valuing the firm at $8 billion.
FTX said all investors in the U.S. affiliate, which included Singaporean state investor Temasek, SoftBank’s Vision Fund 2, and Tiger Global, jumped aboard for its own fundraiser.
Having now raised a combined $2 billion in venture funding to date, FTX has built up a war chest at a time when digital currency prices have sunk considerably. Bitcoin is down 46% from its November record of almost $69,000, while other cryptocurrencies have slumped even further.
In an effort to beef up its Asia expansion, digital asset exchange FTX agreed to acquire Japanese rival Liquid for an undisclosed sum, according to the company’s blog post.
The deal is expected to close in March.
Specifically, FTX will buy all of Liquid’s operating subsidiaries, including Quoine and its Singapore-based unit, the company noted. Founded in 2014, Quoine was one of the first crypto exchanges to be registered by the FSA in Japan in 2017.
Upon closing of the acquisition, Quoine will gradually integrate FTX’s products and services into its own offering, and FTX’s existing Japanese customers will be migrated to Quoine’s platform, the company said.
Additionally, FTX agreed with Liquid to provide its existing Japanese users with services and will transfer those users to Quoine, with effect from March 30.
FTX has a strong position in professional sports. It acquired the naming rights for the Miami Heat’s basketball arena in a 19-year, $135 million deal. The company also signed a global deal with International Cricket Council and also has a partnership deal with Major League Baseball. Recently retired NFL quarterback Tom Brady and his supermodel wife Gisele Bundchen both have equity stakes in FTX.
We have always emphasized the importance of having a good website for your company because it can act as your best tool for marketing and sales. A poorly designed website can repulse people from your business and can cause you to lose customers before you even have them. Get in touch with HyperEffects to work on creating, enhancing, and making the website of your company more user-friendly.