Home ECONOMY Crypto exchange FTX exploring Robinhood acquisition: report

Crypto exchange FTX exploring Robinhood acquisition: report

- Advertisement -


Crypto billionaire Sam Bankman-Fried’s exchange firm FTX is reportedly exploring a possible acquisition of Robinhood – a development that sent shares of the struggling stock trading platform soaring 15% ahead of the closing bell on Monday.

Executives at FTX, a leading cryptocurrency exchange that rivals Coinbase and Binance internationally, are “deliberately internally” on how to buy Robinhood, Acesparks reported, citing sources familiar with the matter.

FTX has yet to formally approach Robinhood with an offer and have yet to make a final decision on whether to pursue a takeover, the sources added.

“We are excited about Robinhood’s business prospects and potential ways we could partner with them,” Bankman-Fried said in an email to Acesparks. “That being said, there are no active M&A conversations with Robinhood.”

Trading of Robinhood shares was briefly halted around 3 pm ET as news about FTX’s potential interest surfaced. Trading resumed about 10 minutes later.

Robinhood declined to comment. FTX did not immediately return a request for comment.

Sam Bankman-Fried is the billionaire co-founder of FTX.

Robinhood’s co-founders, CEO Vlad Tenev and Chief Creative Officer Baiju Bhatt control more than 50% of the company’s voting power, according to company filings.

FTX’s reported interest emerged weeks after an SEC filing revealed that Emergent Fidelity Technologies, a firm owned by Bankman-Fried, had bought a 7.6% stake in Robinhood worth 648 million. The purchase established Bankman-Fried’s Emergent as Robinhood’s third-largest shareholder.

FTX
FTX is a prominent cryptocurrency exchange.

The filing said that the firm took a stake because it was “an attractive investment.” Robinhood rolled out crypto wallet functionality on its platform earlier this year.

Robinhood shares are down about 50% since January as the trading platform weathers a downturn in the broader market that has slammed investors large and small – including the retail “meme stock” traders that made the company a household name during the COVID-19 pandemic.

In April, Robinhood reported a $ 392 million loss for the first quarter. Quarterly revenue shrank 43% to 299 million compared to one year earlier, and the company acknowledged a decline in its monthly active user base.

The company laid off 9% of its workforce that month, citing rapid headcount growth that led to overlap in some roles.

.

- Advertisement -
- Advertisement -
Must Read

Salman Rushdie, Jennette McCurdy books make best seller list

"Where the Crawdads Sing" continues its dominance on the 's Best Selling Books list. Keeping its no. 1 spot for a...
- Advertisement -

EXO’s Xiumin to release debut solo album in September

EXO member Xiumin will release his debut solo record in September. On August 18, South Korean media outlet News1 published a report claiming Xiumin...

Florida parents sound alarm on mental health crisis after teen daughter commits suicide

NEWYou can now listen to Acesparks articles! This story discusses suicide. If you or someone you know is having thoughts of...

NCT’s Jaehyun releases dreamy music video for first official solo song, ‘Forever Only’

NCT's Jaehyun has dropped a dreamy music video for his first official solo song 'Forever Only', which features lyrics he wrote. The guitar-driven mid-tempo...
Related News

Salman Rushdie, Jennette McCurdy books make best seller list

"Where the Crawdads Sing" continues its dominance on the 's Best Selling Books list. Keeping its no. 1 spot for a...

EXO’s Xiumin to release debut solo album in September

EXO member Xiumin will release his debut solo record in September. On August 18, South Korean media outlet News1 published a report claiming Xiumin...

Florida parents sound alarm on mental health crisis after teen daughter commits suicide

NEWYou can now listen to Acesparks articles! This story discusses suicide. If you or someone you know is having thoughts of...

NCT’s Jaehyun releases dreamy music video for first official solo song, ‘Forever Only’

NCT's Jaehyun has dropped a dreamy music video for his first official solo song 'Forever Only', which features lyrics he wrote. The guitar-driven mid-tempo...

Dana White goes on tirade against ‘scumbag media’ for writing about his quotes on fighter pay

There was a lot to unpack from Dana White's recent Actually Me segment on GQ's YouTube channel. Among them were...
- Advertisement -