FTX Revenue Grew 1,000% During Crypto Craze, Documents Show
FTX saw explosive growth last year driven by its global trading business, according to audited financials seen by CNBC, Kate Rooney reported.
Photo Insert: FTX is the first cryptocurrency that owns a sports arena.
The exchange took revenue from below $90 million in 2020 to more than $1 billion last year as cryptocurrencies hit an all-time high. The US business was only a blip on the top line, accounting for less than 5% of revenue.
CEO Sam Bankman-Fried’s empire expanded as FTX bought start-ups across Switzerland and Australia. FTX rode the crypto craze to a billion dollars in revenue last year while expanding its global footprint through a flurry of acquisitions, according to internal documents seen by CNBC. The audited financials give a rare glimpse into the privately held company’s finances.
FTX was profitable, quickly expanding across the globe and saw breakneck growth.
The crypto exchange’s revenue soared more than 1,000% from $89 million to $1.02 billion in 2021. Its profitability, like many start-ups, depends on how you measure it. Operating income was $272 million, up from $14 million a year earlier.
FTX saw net income of $388 million last year, up from just $17 million a year earlier. The company brought in $270 million in revenue in the first quarter of 2022, and was on track to do roughly $1.1 billion in revenue in 2022, according to an investor deck shared with CNBC.
But it’s unclear how FTX held up in the second quarter as crypto prices plunged during the recent so-called “Crypto Winter.”