FTX Ventures Takes 30% Stake In Skybridge Capital

  • The venture arm of crypto exchange FTX is taking a 30% stake in a popular global investment firm based in New York City, Skybridge Capital, amidst a bearish market.
  • Meanwhile, FTX Ventures and Sam Bankman-Fried have continuously struck multiple many deals and recently the latter acquire 7% stake in financial service provider Robinhood.

The investment division of the crypto exchange giant FTX, FTX Ventures, has recently decided to scoop up a major stake in Anthony Scaramucci’s New York-based Investment management company SkyBridge Capital.

Though the financial terms of the deal are not disclosed by either of the companies, FTX Ventures will acquire a 30% stake in the SkyBridge, making it the latest in a streak of acquisition deals by Sam Bankman Fried’s crypto exchange.

According to the joint announcement by the two companies, SkyBridge will use a part of the proceeds from the acquisition deal in crypto investments to hold on its balance sheet.

SkyBridge’s performance has been impacted by recent turmoil in the cryptocurrency industry, which included several businesses declaring bankruptcy. As a result, the company decided to halt withdrawals in one of its funds. Scaramucci, however, has remained upbeat about cryptocurrency’s future and urged investors to “stay disciplined.”

Historically, SkyBridge has focused on conventional hedge funds, but during the most recent bull market, it made a shift toward cryptocurrencies, with reports in July stating that it was preparing to launch a Web3-focused fund to invest in late-stage crypto initiatives. A formal announcement regarding the fund is scheduled to take place on September 12 during SkyBridge’s annual Salt conference, according to the reports at the time.

As cryptocurrency prices crashed this year, 30-year-old Bankman-Fried emerged as the industry’s savior by providing several lifelines to digital asset platforms.

FTX CEO had previously stated in July that his company and he still had “a few billion” dollars available to support faltering businesses that might further upset the digital asset market. Notably, FTX heavily depends on the stability of the cryptocurrency market and earns the majority of its revenue from trading fees.

Before Voyager Digital filed for bankruptcy, his cryptocurrency trading company, Alameda Research, gave it $200 million in cash, a stablecoin revolving credit facility, and a facility for Bitcoin. However, SBF later refused to offer additional support, and the lending platform ultimately filed for bankruptcy. Meanwhile, FTX had given BlockFi a $400 million revolving credit facility with a proposal to acquire it for up to $240 million.

Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

Latest News