This information was reported by CNBC television, which accessed internal company documents.
The company had a profit of only $89 million in 2020, a small fraction of the $1.02 billion in 2021. FTX benefited primarily from the huge interest in cryptocurrencies in 2021.
Another interesting metric is operating profit, which was $272 million in 2021. In 2020, it was only $14 million, showing us a year-over-year increase of 1,842%.
Net profit was $388 million, up significantly from $17 million in 2020. Which is a year-over-year increase of 2185%.
FTX has struggled to buy distressed companies
So these big gains may explain the reports we saw during the year about FTX trying to buy other companies that were in trouble.
In July, FTX signed a deal giving it the option to buy Bithumb. In addition, the exchange showed interest in Voyager, but this was rejected because the offer was said not to be very lucrative.
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However, there have been acquisitions such as the Swiss company Digital Assets DA AG and others. In total, 15 smaller companies were acquired, creating a rather interesting global portfolio. The companies cover countries such as Germany, Singapore, Cyprus, Gibraltar, Turkey and the United Arab Emirates, among others.
There have also been debates over the well-known investment platform Robinhood, where FTX founder Sam Bankman-Fried holds a 7.6% stake. However, both Robinhood and Sam Bankman-Fried have denied that a deal is in the works.
At the end of 2021, the company held approximately $2.5 billion in cash.
What’s interesting is the marketing spend
In 2021, the company spent approximately 15% of its revenue on advertising. That helped them buy the naming rights to the Miami arena to the NBA.
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Another large amount went to the Super Bowl, where we saw a collaboration with American comedian and actor Larry David. We also saw celebrities Tom Brady and Giselle Bündchen in association with the company.
FTX plans to spend approximately $900 million on advertising over the next few years.
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