Crypto exchange FTX reportedly saw massive growth during the crypto bull run of 2021 when markets hit all-time highs.
Citing information from leaked financial documents, CNBC reports that the firm generated $1.02 billion in 2021, a more than 1,000% increase from its revenue of $89 million in 2020.
Operating income increased from $14 million to $272 million during the same timeframe. Net income also rose from $17 million to $388 million.
The exchange held $2.5 billion in cash at the end of 2021 and profit margins for the year were at 27%, which could have been closer to 50% without the advertising and related “party expenses”.
An investor deck also projects FTX to make $1.1 billion in 2022 as the exchange generated $270 million in the first quarter alone. It is not clear though how the company’s financials fared in the second quarter when the prices of crypto assets plunged amid a bear market that saw Bitcoin shedding over a third of its record high.
The privately held company made rapid business expansions as well. It ventured into stocks trading after founder Sam Bankman-Fried took a 7.6% stake in retail brokerage platform Robinhood.
FTX is also acquiring companies. The US arm of the exchange, FTX.US, bought stock-clearing company Embed to expand its equities division. The firm also closed a deal that gives it an option to buy BlockFi for $240 million after extending the embattled crypto lender a $240 million line of credit.
In July, FTX was reportedly in “advanced talks” to acquire Bithumb, South Korea’s second largest crypto exchange. It also made an attempt to buy bankrupt crypto exchange Voyager Digital, but the latter rejected the early buyout offer.
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