The crypto cash cow was mooing loudly in 2021, but investors know what happened after. In 2022, a slow decline turned into a full-fledged freefall, hampering the market and bringing several investing companies to their knees. One company, FTX, saw a jaw-dropping 2021, putting its name into the spotlight with flashy ads, big deals and aggressive innovation. But in 2022, it’s causing more of a stir as it remains on the up-and-up, even as most of its peers limp along in struggle. Today, leaked documents are revealing just how much FTX grew in the last year.
Investors have been watching FTX’s fast rise to the forefront of the crypto world since early last year. Around this time, FTX began attracting serious attention as it became one of the first exchange plays to offer tokenized versions of stocks, after Binance (BNB-USD). Later in the year, it would acquire crypto derivatives company LedgerX, which helped it to bring about its new stock trading platform.
Beyond its business moves, the company has been thrusting its name into the public eye with several big advertising deals. Most notable among these are the naming rights deal made with the NBA’s Miami Heat, as well as a deal with the MLB to put its logo on umpires’ uniforms. Not to mention, earlier this year, FTX had perhaps one of the most talked-about commercials with its spot starring comedian Larry David.
Through this year’s volatility, FTX is showing no signs of wear. While other companies are laying off employees to cut costs, FTX is pushing bailouts and acquisition deals. The company is receiving much attention for its deal to acquire BlockFi. It has made several other bailout deals as well, shaking off the crypto winter entirely.
FTX Documents Reveal How the Company Excelled Through Crypto Winter
So, how did FTX end up at a point where it could be throwing around all of this money as other companies are barely treading water? Newly leaked documents are revealing just how prosperous the company’s 2021 was, and how much it enjoys for its aggressive business tactics, even during a bear market.
A CNBC report over the weekend revealed information relating to FTX’s revenue growth throughout 2021. The figures the company had posted are absolutely massive. For starters, the company’s revenue in 2021 topped $1 billion. This might not come as a surprise, given the extreme growth period crypto saw last year. But, for FTX, this is a monolithic leap. In 2020, the company’s revenue was just $89 million. This makes for a year-over-year revenue increase of more than 1,000%.
One might expect FTX’s final income to be less stunning, especially considering the many expensive deals and acquisitions it made throughout the year. Still, though, the company posted an operating income nearly 100% higher than in 2020, taking home $272 million.
At the start of 2022, the company reportedly held $2.5 billion in cash. Obviously, FTX was quite savvy with its money, allowing it to be in the enviable position it currently enjoys among the declining market. Not to mention, it raised an additional $400 million in a January funding round, adding to the pool still. While FTX did not comment on the initial leak, founder Sam Bankman-Fried has confirmed the figures in the report.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.