FTX Made A Billion Dollars In Revenue In 2021, Marking A 1000% Growth: Report

Crypto exchange FTX reportedly made a billion dollars in revenue in 2021 due to the surge in the popularity of cryptocurrencies and increased investments from venture capitalists.

Internal documents confirmed that the exchange was profitable and a success while expanding on a global scale rapidly under the leadership of CEO and founder Sam Bankman-Fried, CNBC reported over the weekend.

The income of FTX surged by more than 1,000% from $89 million to $1.02 billion in 2021 following the crypto wave that put the market at $3 trillion at its peak.

The documents also revealed that the operational income of the exchange was around $272 million, which was a notable increase from the $14 million revenue logged a year earlier. Operational income is calculated after subtracting the costs of operations and other expenditures from a firm's gross income. It doesn't include taxes or interests.

It is clear that the revenue generated by the crypto exchange was used to expand the firm and acquire profitable deals as well. The net income of FTX was $388 million last year, up from just $17 million in 2020.

On the other hand, in the first quarter of 2022, which was slightly bearish for the crypto market, the crypto exchange brought in $270 million in revenue, while the goal for the entire year is to generate an income of roughly $1.1 billion, as per an investor deck shared with the outlet.

In comparison with the revenue made by its rival, Coinbase, FTX has been increasingly profitable in a bearish market due to unexplained reasons. Meanwhile, Coinbase reported a loss of over $1 billion in the second quarter of 2022, while its monthly users dropped to 9 million in Q2 from 9.2 million last quarter.

FTX CEO Bankman-Fried recently stated that he has been spending his own money to save troubled crypto firms amidst a bearish crypto market.