FTX revenue soared 1,000% amid last year’s crypto craze: report

FTX revenue soared 1,000% amid last year’s crypto craze: report

By Benson Toti - min read
  • FTX saw its 2021 revenue grow from $89 million to hit over $1 billion as the crypto market rallied.
  • Growth came amid huge expansion across the globe, CNBC said in a report citing leaked documents.
  • Despite crypto winter, FTX has looked to add to its growing portfolio of companies. 

FTX saw its revenue grow more than 1000% in 2021 as the massive bull market that took Bitcoin to highs of $69,000 pushed the cryptocurrency exchange’s revenue from below $90 million in 2020 to over $1 billion last year.

A CNBC report, citing leaked audited documents, revealed that the company, led by CEO Sam Bankman-Fried, generated the huge revenue amid a growing footprint built on crucial acquisitions.

FTX’s revenue hit $1.02 billion

In 2021, as rallying markets pulled in new money and helped crypto business establish a foothold following the previous market cycle, FTX emerged as one of those that took full advantage.

Financial success only helped to fuel global expansion for the company, adding to the overall revenue growth year-over-year, per documents the publication cited. Indeed, FTX’s revenue reportedly jumped from $89 million in 2020 to $1.02 billion in 2021 – reflecting an increase of more than 1000%.

The crypto exchange also saw its net income rise significantly – while in the previous year it stood at around $17 million, the crypto craze helped push that to $388 million. The company’s operating income went up from $14 million in 2020 to over $272 million in 2021.

Documents also showed FTX had cash holdings of nearly $2.5 billion at the end of 2022, with 27% profit margins.

FTX continues to grow its global footprint 

The revenue in Q1 2022 was $270 million, with forecasts looking at $1.1 billion for the year. This outlook is likely to be clearer with the release of Q2 figures, given the impact of crypto winter on crypto prices during the quarter.

Despite the crypto winter, Bankman-Fried’s company has looked to continue with its acquisition blitz. Evidently, the crypto turmoil seen in the first half of the year has provided an opportunity to snap up some companies on the cheap.

For instance, June saw FTX acquire Canada-based crypto trading platform Bitvo, and FTX US acquire clearing firm Embed. The deal with the latter has been key in FTX US’ offering of stocks trading. Other deals on the FTX table are for crypto lender BlockFi and Bithumb, a South Korea-based cryptocurrency exchange.

As well as these major acquisitions, FTX has struck deals and bought multiple businesses around the world. 

Notably, the leaked documents show 15 smaller firms spread across Singapore, Australia, Germany, Turkey, Switzerland and the United Arab Emirates, Cyprus and Gibraltar, among other countries.