Sam Bankman-Fried’s FTX Ventures is continuing its investment spree and will take a 30% stake in Anthony Scaramucci-led investment firm SkyBridge Capital, according to a CNBC report today.
SkyBridge will use a portion of the funding to deploy $40 million in crypto investments to hold on its balance sheet as a long-term investment, the report said.
According to a press release, FTX Ventures' investment will also provide SkyBridge additional working capital to fund growth initiatives and new product launches.
The deal is the latest in a series of collaborations between the two companies. They previously signed a multi-year partnership to sponsor global SALT conferences and co-present Crypto Bahamas.
"After working with Anthony and his team following our SALT conference partnership, we saw there was an opportunity to work closer together in ways that could complement both our businesses. We look forward to collaborating closely with SkyBridge on its crypto investment activity and also working alongside them on promising non-crypto-related investments," said Bankman-Fried.
Founded in 2005, SkyBridge pivoted to crypto during the bull run and was impacted by the recent downturn in the crypto market. According to Bloomberg, after sharp declines in July, SkyBridge suspended redemptions from one of its funds, which had exposure to FTX.
However, according to the company, SkyBridge remains profitable and debt-free, notwithstanding market conditions.
Scaramucci remains bullish on bitcoin in the long term, despite the short-term difficulties. In July, it was reported that the firm also plans to roll out a web3-focused fund.
This article has been updated to provide additional information.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.