FTX revenues hit $1.0 billion during crypto bull run
Global trading revenue generated by FTX hit $1.02 billion in 2021 to surpass revenue generated by some major stock exchanges, according to leaked financial documents published by CNBC.
The report estimates that revenue at Sam Bankman-Fried’s crypto exchange increased more than 10 times from the $89 million recorded in 2020. Additionally, FTX’s operating income swallowed to $272 million throughout last year’s bull run from $14 million a year earlier. FTX saw net income of $388 million last year, up from just $17 million in 2020.
CNBC report also states that strong momentum seen in 2021 continued into the first quarter with $270 million in Q1 revenue. However, it was unclear how FTX held up in the second quarter as prices plunged and crypto platforms struggled to maintain momentum during the latest “crypto winter.”
By way of comparison, Coinbase posted a loss of $1.1 billion on revenue of $803 million for the second quarter of 2022. The results amounted to the second consecutive quarterly loss for the publicly traded exchange, which posted $7.4 billion in revenue and $3.6 billion of net income last year.
Sam Bankman-Fried expands empire
The crypto giant, helmed by billionaire Sam Bankman-Fried, launched last month stock trading capabilities in the US.
The exchange has already fine-tuned details to enter the world of traditional finance. To provide transparent trade execution and fair pricing, FTX Stocks will initially route all orders through Nasdaq, and will not receive any payment for order flow.
FTX US made headlines earlier this year when the exchange has become an investor in New York City-based IEX Group, the eighth largest stock exchange operator globally. The startup took a bet and made a strategic investment in the “Flash Boys” exchange as it aims to leverage its expertise and infrastructure to establish a regulated marketplace for buying, selling, and trading digital asset securities.
Sam Bankman-Fried’s crypto exchange has applied for a New York trust charter (becoming a New York Limited Liability Trust Company) with the state’s Department of Financial Services (NYDFS). If approved, the coveted licence will enable FTX.US to offer its cryptocurrency trading services to clients based in New York. Additionally, a NY Trust Charter allows a company to provide services in many other states without obtaining additional licenses.
