Totally unlikely: FTX’s revenues increased by over 1000% last year!

According to CNBC’s report, FTX’s revenue increased by more than 1000% last year, from $89 million to $1.02 billion. FTX’s operating income in 2021 jumped to $272 million from $14 million a year ago in 2020. Similarly, the company’s net income was $388 million last year, a massive increase from $17 million the year before.

This year, in 2022, crypto-currency exchange FTX embarked on a strong wave of acquisitions. FTX has also made investments in crypto companies that have been facing the current crisis. FTX is on track to record $1.1 billion in revenue by 2022. The CNBC report notes:

FTX had about $2.5 billion in cash at the end of last year and profit margins of 27%, according to the documents. Margins were closer to 50% if advertising and “related party” expenses were removed.

Earlier this year, in January, FTX secured $400 million in funding from venture capital giants like Tiger Global and SoftBank, bringing the company’s valuation to more than $32 billion.

Taking on the giants

Founded only three years ago by Sam Bankman-Fried, the crypto-currency exchange is competing with giants like Coinbase and Binance. In order to compete, the company has built its own fleet of crypto-currency subsidiaries.

Amidst a very strong balance sheet, FTX has been looking to buy some of the troubled assets recently. As a result, the crypto exchange has poured several million dollars into various crypto companies. Last month FTX signed a deal to buy crypto lender BlockFi. It was also in talks to acquire South Korean exchange Bithumb. In addition, it has taken stakes in several small crypto-currency companies spread across several countries.