Sam Bankman-Fried’s crypto exchange, FTX, recorded exponential growth in 2021 to see its annual revenue reportedly surge more than 1,000%, from $89 million in 2020 to $1.02 billion in 2021.
FTX Revenue Surges Over $1 Billion
Leaked internal documents of the financial audits of FTX for the fiscal year 2020-2021 show that the exchange witnessed a 1,000% increase in revenue, growing from $90 million in 2020 to $1.02 billion in 2021.
In addition, the operating income of FTX was $272 million in 2021, up from $14 million a year earlier. The exchange also saw a net income of $388 million last year, compared to the $17 million it generated in 2020.
According to the documents, FTX generated $270 million in revenue in the first quarter of 2022. However, while the exchange was on course to hit a revenue of $1.1 billion in 2022, its revenue for 2021 remains unreported.
Bankman-Fried Confirms the Numbers
Following the reports, FTX chief executive officer Sam Bankman-Fried (SBF) confirmed the revenue generated by his exchange, writing on Twitter (NYSE:TWTR), “fwiw numbers here are correct ballpark.”
fwiw numbers here are correct ballpark
According to the internal documents, the massive growth of the crypto exchange was driven by massive customer onboarding, partnerships, sponsorships, and other factors in 2021.
On the Flipside
- The United States subsidiary, FTX U.S., has received a cease and desist letter from the Federal Deposit Insurance Corporation (FDIC) for false representation.
Why You Should Care
FTX was one of the faces of crypto exchanges amidst the crypto hype of 2021, leading to the exponential growth of its revenue.