A report by CNBC claims that global cryptocurrency exchange FTX grew its revenue to over $1 billion in 2021 – up from around $90 million in 2020.
Operating income was up from $14 million to $272 million, while net income increased from $17 million to $388 million, according to internal documents seen by CNBC.
The alleged documents also showed that the company brought in $270 million in revenue in the first quarter of 2022.
FTX has accompanied this growth with an impressive list of acquisitions in a bid to expand its global footprint.
For example, last month, FTX signed a deal that gives it the option to buy BlockFi, and it was also in negotiations to acquire South Korean trading company Bithumb.
According to the alleged documents, FTX has approximately $2.5 billion in cash and boasted 27% profit margins last year.
Its last fundraising round took place in January, when it received $400 million from the likes of Vision Fund 2 and Tiger Global at a valuation of $32 billion.
Disrupting the cryptocurrency industry
FTX entered a market that was already dominated by a select group of competitors.
It has since focused on building an extensive range of subsidiaries so that it can compete against these established players – and the reported data shows that this has been very successful.
FTX is headquartered in Antigua, while its derivatives markets are situated in the Bahamas.
It has also acquired assets that are based in countries like Switzerland, Australia, Cyprus, Germany, Gibraltar, Singapore, Turkey, and the UAE.
This allows FTX to operate in an extensive range of markets as they can leverage the regulatory licenses that these assets had prior to their acquisition.
Big push in the US
FTX is also focused on expanding its operations in the US, as its current American operations account for less than 5% of its total revenue.
These efforts include its advertisement at the illustrious 2022 Super Bowl, which featured celebrities such as Tom Brady, Giselle Bündchen, and Larry David – with Brady and Bündchen both being equity investors in FTX.
FTX also owns the naming rights to the Miami Heat’s NBA arena, and plans to spend around $900 million in advertising in the next few years.
FTX is the future
FTX has now expanded into stock trading, and is always on the lookout for further investment opportunities.
According to the alleged internal documents, roughly two-thirds of FTX’s revenue still comes from futures trading fees, and a further 16% comes from spot trading.
Given its impressive alleged growth in 2021, it is worth keeping an eye on the fledgling company as it continues to make big plays in the cryptocurrency industry.