FTX, a leading cryptocurrency exchange, seemingly has an unusually high financial success rate. Per the documents leaked from within the company, FTX was able to capitalize on the crypto mania to produce one billion dollars in revenue in 2018 while also expanding its global reach through a frenzy of acquisitions.
The documents provide an incredibly rare peek into the financial operations of the privately held company. FTX has been a success, swiftly expanding its activities worldwide and experiencing phenomenal growth.
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According to a report from CNBC, the revenue of the FTX increased more than 1,000%, from $89 million to $1.02 billion in 2021. Like many start-ups, its profitability is determined by how it is measured. Operating income increased to $272 million from $14 million the previous year. FTX earned $388 million in net profits last year, up from $17 million the previous year. Furthermore, as per the report, FTX will have $2.5 billion in cash at the end of 2021 and a profit of 27%.
However, revenue for the second quarter of this year was $808.3 million, a 64% decline from last year. Furthermore, it recorded an unexpected net loss of $1.1 billion, compared to a net income of $1.59 billion in the same period last year. This is due to a drop in retail trading volumes.
While the company has made immense financial success during the notable bull run of the crypto market, its performance during the overwhelming decline of the crypto market is not ascertained.
FTX is a widely popular derivative crypto exchange that offers a wide range of financial products. Recently it included the trading of popular stocks within its application.