What do we know about the recent Crypto Exchange FTX and Skybridge deal | bitcoinist.com
The venture capital arm of Crypto Exchange FTX has planned to purchase a 30% stake in Skybridge Capital. Skybridge Capital is a hedge fund founded by Anthony Scaramucci.
The amount for which the agreement was concluded has not yet been disclosed.
According to reports, SkyBridge will use $40 million of the proceeds to purchase crypto to bolster its long-term balance sheet.
SkyBridge has been through a tough time and the deal was sealed during such a time.
SkyBridge crypto investors were out given the recent investment crash.
The industry as a whole has been staggering under a downturn and it has wiped out nearly $2 trillion in market value over nearly a year.
FTX, the exchange platform has been helpful during these tough times for SkyBridge by helping the business and making it easier for people to grow by moving products such as stocks and options.
Sam Bankman Fried, CEO of FTX said:
We look forward to working closely with SkyBridge on their crypto investment business and also working alongside them on promising non-crypto related investments.
Skybridge Continues to Remain Bullish Despite Crypto Slowdown
Mr Scaramucci founded SkyBridge in 2005. He served as White House communications director under Donald Trump and later became a critic of the former president. Scaramucci has been inclined towards cryptocurrencies.
The current market disruption has caused many such companies to file for bankruptcy, causing the price of cryptocurrencies to drop significantly. It also affected SkyBridge’s performance and caused the company to suspend withdrawals of its funds.
Despite such a situation, Scaramucci was quite positive about the crypto and its outlook, he also tried to encourage investors to stay “disciplined” as heard in a recent interview.
FTX and SkyBridge share common interests
SkyBridge and FTX met in April where they organized a conference together in the Bahamas.
SkyBridge hosts a series of conferences called SALT that bring together asset managers, entrepreneurs and others.
FTX has a multi-year partnership that basically involves sponsoring these events in North America, the Middle East, and even Asia.
This news was followed by Scaramucci’s annual Salt conference in New York.
The event is usually sponsored by Bankman-Fried, who is also a speaker.
The Bankman-Fried’s owned FTX exchange, which is now a big business, depended on its revenue through trading fees and it heavily depends on how the crypto market is currently doing.
The current market situation appears to have fallen 70% from its peak last fall, resulting in favorable deals for bigger and wealthier companies.
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