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FTX is considering investing in stock trading app Stocktwits, according to sources quoted in Decrypt.
FTX Eyes Stocktwits Deal
Leading crypto exchange FTX is in talks with the social investing site Stocktwits for a $20 million investment deal, anonymous sources told Decrypt.
The deal, consisting of an initial investment of $20 million, would also give FTX the option to buy Stocktwits outright in the future, according to the report.
FTX CEO Sam Bankman-Fried has not yet confirmed or denied the deal. However, given FTX’s recent record of sponsorships, Stocktwits would be a fitting choice for the exchange’s next marketing deal.
Stocktwits, which launched in 2009, saw its user base grow to over 3 million in 2020. Additionally, the “meme stock” phenomenon of early 2021 brought even more users to the site, many of whom had never used it before.
The same sources who broke the news of a deal say Stocktwits now holds a valuation of over $100 million.
The potential Stocktwits deal is the latest in a long list of sponsorships for the crypto exchange. Just two days ago, FTX made history with the biggest sports partnership in crypto, signing a five-year deal with Major League Baseball.
Earlier this month, the exchange partnered with Team Solomid for its first esports sponsorship. The $210 million deal included exclusive naming rights; the team is now called TSM FTX.
Another of FTX’s high-profile sponsorships involved the NBA team Miami HEAT, which has renamed its 19,000-capacity home court to the FTX Arena as part of a 19-year, $135 million deal.
With its recent marketing ventures, FTX appears to be targeting a mainstream audience. Although it remains to be seen whether the bold strategy will work, it’s likely that sports fans, esports enthusiasts, and stock traders alike will have to get used to hearing about FTX over the next few years.