FTX’s revenue has surged 1000% in 1 year; shows leaked documents. The data says that in the financial year 2020-21, the operating income of FTX increased to $272 million, which is a 1842.85% jump from $14 million the year before that. This increase not only shows the growth of FTX as a crypto exchange but the insane demand and FOMO during the 2020-21 rally.
FTX’s revenue information
FTX was one of the leading crypto exchanges during the 2020-21 bull run and has seen a major jump in its revenue and profits. FTX’s financial reports show that its revenue surged from $90 million in 2020 to $1.2 billion in 2021, a 1000% jump. Apart from the jump in operating income and revenue, their profits also shot up 2182.35%, from $17 million to $388 million.
Do note that all this data was not provided by FTX, so it’s not official. CNBC reported the information saying they had access to leaked financial documents of the company. So, take it with a grain of salt. However, I firmly believe that even if these numbers might not be 100% accurate, they are quite close.
Bear market plans
FTX is definitely on the right trajectory of growth, with $388 million in profits in 2021 and $270 million in revenue in Q1 2022. The exchange also had solid cash reserves of $2.5 billion to survive this bear market. So, it looks their strategy will be similar to other platforms. That is cutting down on expenses, laying off staff, and reducing their quarterly burn.
Another major plan of this bear market for FTX is acquisitions. Sam Bankman Fried, CEO of the exchange, has been on an acquisitions spree in this bear market. There are just so many opportunities right now that he is not stopping. They even bought a stake at Robinhood, which is another publicly listed well-known stock and crypto platform. Other platforms on the verge of bankruptcy also got investments from FTX. One such lending platform is BlockFi which received $250 million from them to help the company stabilize and strengthen its balance sheet. Now, how well these investments will pay out will be evident in the next bull run.
What are your thoughts as FTX’s revenue surged 1000% from 2020 to 2021 while profits jumped by more than 2000%? And do you think this financial data is accurate? Let us know in the comments below. And, if you found our content informative, share it with your friends.