Crypto Exchange FTX’s Revenue Soared 1000% in 2021: Report

Crypto exchange FTX saw its revenue increase by more than 1,000% from $89 million to $1.02 billion in 2021, according to a CNBC report citing leaked internal documents seen by the outlet.

With a reported trading volume of more than $1.5 billion in the last 24 hours, FTX is currently the industry’s third largest crypto exchange behind Binance and Coin base just.

The revenue breakdown shows a 1,842.85% increase in operating income, from $14 million to $272 million year over year. FTX reportedly brought in $388 million in net income, a whopping 2,182.35% increase from the $17 million recorded the previous year.

While FTX declined to comment, Sam Bankman-Fried, the founder of the exchange, took to Twitter to confirm the report, saying the figures revealed “are ballpark correct.”

The report further claims that the exchange had $2.5 billion in cash by the end of 2021 with a profit margin of 27%.

In terms of this year’s performance, FTX reportedly collected $270 million in revenue in the first quarter of 2022 and was on track to earn around $1.1 billion in revenue in 2022.

However, it is unclear whether the exchange will live up to these expectations amid the big crypto sale in 2022 that gave the price of Bitcoin (BTC) is plunging from November’s all-time high of nearly $69,000 below $18,000 in June.

The leading cryptocurrency was changing hands at $21,164 at press time, down about 1% on the day.

Decrypt contacted FTX for further comment on the report and will update the article if we hear back.

FTX turns its attention to the American market

The report claims that about two-thirds of FTX’s revenue came from futures trading fees, while about 16% came from spot trading.

This comes as no surprise since FTX originally launched as a crypto derivatives exchange, adding options such as spot trading and a NFT market later.

As for its ambitions in the US, the company is focused on continued expansion. FTX US, the company’s US subsidiary, accounted for less than 5% of total revenues in 2021; however, as Bankman-Fried revealed during a recent episode of Decrypthis gm podcast, this particular business area is the majority of his attention.

Commenting on the acquisition of Ledger Holding, the parent company of CFTC-licensed LedgerX – now renamed FTX US Derivatives – SBF said it was “one of the most important things we did.”