FTX Cryptocurrency Arm Project Planned Buy 30% stake in Skybridge Capital. Skybridge Capital is a hedge fund founded by Anthony Scaramucci.
The amount for which the deal was closed has not been disclosed yet.
According to reports, SkyBridge will use $40 million of the proceeds to purchase cryptocurrencies in order to boost its long-term balance sheet.
SkyBridge was going through a difficult patch phase and the deal was sealed during this time.
Cryptocurrency investors have exited SkyBridge due to the recent investment collapse.
The industry as a whole has been astounding with the downturn that wiped out nearly $2 trillion in market value over the course of almost a year.
FTX, the exchange platform has been helpful during these trying times for SkyBridge by helping businesses and facilitating people’s growth by transferring products like stocks and options.
Sam Bankman-Fried, CEO of FTX, said,
We look forward to collaborating closely with SkyBridge on their crypto investment activity, as well as working alongside them on promising non-crypto investments.
Skybridge continues to remain bullish despite cryptocurrency decline
Mr. Scaramucci founded SkyBridge in 2005. He served as director of communications in the White House under Donald Trump and later became a critic of the former president. Scaramucci was leaning towards cryptocurrency.
The current turmoil in the market has caused many of these companies to file for bankruptcy causing cryptocurrency prices to drop considerably. This also affected SkyBridge’s performance and prompted the company to suspend its withdrawals.
Despite this situation, Scaramucci has been very positive about cryptocurrency and its prospects, and has also tried to encourage investors to stay “disciplined” as he heard in a recent interview.
FTX and SkyBridge share common interests
SkyBridge and FTX got together in April where they held a conference together in the Bahamas.
SkyBridge hosts a series of conferences called SALT that brings together asset managers, entrepreneurs, and more.
FTX has a multi-year partnership that mainly aims to sponsor these events in North America, the Middle East and even Asia.
This news followed Scaramucci’s annual Salt Conference in New York City.
The event is usually sponsored by Bankman-Fried who is also a speaker.
The FTX exchange owned by Bankman-Fried’s which is today a big company depends on its revenue through trading fees and this largely depends on how the cryptocurrency market is performing at the moment.
The current market situation appears to have fallen 70 percent from its peak last fall causing favorable deals for larger and wealthier companies.