FTX Ventures said it plans to buy a 30% stake in global investment firm SkyBridge Capital, the firm announced Friday. SkyBridge intends to use a part of the funds to buy $40 million worth of cryptocurrencies as a long-term investment.

SkyBridge to Invest $40 Million in Crypto Using FTX Funds

FTX Ventures, a venture capital (VC) arm of the Bahamian crypto exchange FTX, announced Friday it will purchase a 30% stake in investment management firm SkyBridge Capital. The value of the deal remained undisclosed.

SkyBridge plans to use the fresh funds to facilitate growth and invest in the development of new products. Moreover, the investment manager will also use a part of the capital to make a $40 million long-term investment in crypto assets.

“Sam is a visionary who has built incredible businesses that are synergistic with the future of SkyBridge. Our business has continued to evolve since we founded the firm in 2005. We will remain a diversified asset management firm while investing heavily in blockchain.”

– Anthony Scaramucci, Founder and Managing Partner of SkyBridge

With the deal, SkyBridge and FTX continue to strengthen their relationship after years of collaborating on important conferences such as SALT and Crypto Bahamas. The companies also plan to increase their joint investing efforts in the venture capital and digital asset spaces.

SkyBridge and FTX Continue to Back Crypto and Web3 Projects Despite 2022 Sell-Offs

SkyBridge’s partnership with FTX comes just months after the investment firm introduced a new fund to invest in Web3 and crypto. According to Business Insider, SkyBridge’s plans for a fresh fund came just days after the firm halted withdrawals from its $250 million Legion Strategies fund due to a major drawdown in crypto and stock markets.

Before the halt, SkyBridge faced a massive exodus of investors after the crypto sell-off wiped almost a quarter of the value of its investments in the second quarter. However, the firm still remains debt-free and profitable despite unfavorable market conditions.

FTX Ventures, the crypto exchange’s VC arm involved in the deal with SkyBridge, was unveiled in January 2022 to back the “world’s best” teams developing digital asset projects. As one of the largest funds in the industry, FTX Ventures aims to invest in companies operating in a wide array of industries including social, gaming, fintech, software, and healthcare.

Moreover, FTX also teamed up with Reddit last month to integrate the social media network’s “Community Points” across the US, EU, Australia, and other major global markets. The partnership now allows users to pay gas fees using FTX Pay and move the Community Points to Arbitrum-powered Ethereum wallets.

This article originally appeared on The Tokenist

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