Sam Bankman-Fried’s crypto exchange FTX posted $1.02 billion in revenue last year, jumping 1,000% from $89 million in the prior year, CNBC reported, citing internal documents it had viewed.
FTX also posted net income of $388 million in 2021, up from just $17 million in 2022, the documents showed.
During the first quarter of 2022, FTX recorded $270 million in revenue, and is on track to post about $1.1 billion in revenue this year, CNBC reported, citing an investor deck shared with the business channel.
The report gives a window into the revenue generated by one of the larger, privately held crypto exchanges. Coinbase (COIN), the largest publicly traded crypto exchange, posted $7.4 billion in revenue last year versus $1.1 billion in 2020. But its quarterly revenue fell to $803 million in the second quarter and it posted a net loss of $1.1 billion as trading volumes declined sharply.
The bulk of FTX’s revenue comes from derivatives trading, while about 16% came from crypto spot trading in 2021, according to CNBC. The report also noted that less than 5% of FTX's total revenue came from its U.S. business in 2021, and that FTX spent approximately 15% of its 2021 revenues on sales and marketing.
FTX declined to comment to CNBC on its leaked financials, though Bankman-Fried acknowledged the report via Twitter over the weekend.
"Fwiw numbers here are correct ballpark," Bankman-Fried tweeted on Saturday, referring to the CNBC report.
FTX didn’t immediately respond to CoinDesk’s request for comment.
UPDATE (August 22, 2022 19:55 UTC): Updated with Twitter comment from FTX's Sam Bankman-Fried.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.