FTX Aftermath, CEO Who Lost $130M Vows to Never Touch Crypto Again

As an analyst with years of experience under my belt, I can understand Orlando Bravo’s apprehension towards crypto investments following the FTX implosion. With a portfolio that boasts some of the biggest tech buyouts in recent history, the $900 million investment in FTX seemed like a promising venture for Thoma Bravo. However, the collapse of the exchange in 2022 was a stark reminder of the risks associated with crypto markets, leading to a substantial loss and a change in their investment philosophy.


After the dramatic collapse of the cryptocurrency exchange FTX in 2022, Orlando Bravo, CEO of Thoma Bravo, has sworn off further involvement in cryptocurrencies. Previously, his company had invested $900 million into this platform. The demise of the crypto exchange resulted in substantial losses and a sharp decline in the value of digital assets

Orlando Bravo Rues FTX Investment 

After a disappointing experience with cryptocurrency investments, specifically the collapse of FTX in 2022, the CEO of Thoma Bravo has decided not to invest in digital assets anymore. In a recent interview on CNBC, Bravo discussed the lessons learned from this event, stating that their private equity firm will avoid crypto going forward due to their company’s philosophy

As a researcher, I’ve learned a valuable lesson: when I err or encounter a potential pitfall, my approach is to avoid revisiting the same issue, regardless of any subsequent discoveries that might have been overlooked

The company led a $900 million investment into the crypto exchange raising its valuation to $18 billion. Bravo described the exchange as heading into the next phase of growth in 2021 with its contribution totaling $130 million. Thoma Bravo has become a major tech investor stemming from huge buyouts in recent years including Proofpoint, Coupa, Anaplan, and RealPage. 

The company currently manages around $160 billion worth of assets as it enters a new phase. A collapse in the cryptocurrency market resulted in roughly $8 billion in losses, with repayment strategies being implemented. More recently, Coinbase’s Chief Legal Officer, Paul Grewal, criticized the Securities and Exchange Commission (SEC) for advising against redemptions using stablecoins

Still Bullish on Blockchain Technology 

Although the company experienced significant financial setbacks, Bravo emphasized the potential of the underpinning technology. However, he affirmed their choice to abstain from specific cryptocurrencies. The blockchain technology, already adopted by numerous institutions, is increasingly being recognized as mainstream, with traditional applications continuing to expand

Personally, I’m a believer in blockchain. I think it’s a powerful way of doing many things and for many use cases, and I’ve always believed that. From an investment standpoint, after you make a mistake, you kind of move on.

The events surrounding FTX have caused numerous financial institutions to face challenges, resulting in a significant call for stricter market oversight by regulatory bodies

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2024-09-06 00:22