FTX CEO Denies Possible Acquisition of Robinhood

| Updated
by Ibukun Ogundare · 2 min read
FTX CEO Denies Possible Acquisition of Robinhood
Photo: Depositphotos

Countering rumors of a possible acquisition, FTX CEO Sam Bankman-Fried said the exchange may partner with Robinhood Markets (NASDAQ: HOOD).

Bloomberg earlier reported that the FTX CEO is considering buying Robinhood. The report cited people familiar with the matter, who claimed that the purchase discussions were going around within the exchange and led by the Sam Bankman-Fried. However, rumors had it that the deal was not official and was subject to change. In reaction to a possible purchase by FTX, Robinhood jumped about 14% to $9.12. HOOD is currently trading at $8,66, a 5.04% decline over its previous close of $9. 12.

FTX Says No Plans to Buy Robinhood

Countering the acquisition reports making rounds, the exchange chief said FTX is only open to partnering with Robinhood Markets. He also disregarded claims of acquisition.

“We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built. That being said there are no active M&A conversations with Robinhood.”

Robinhood and FTX are known to always be in different kinds of relationships. In May, Sam Bankman-Fried purchased a 7.6% stake in the online brokerage. According to a filing with the US Securities Exchange Commission (SEC), the stake purchase was worth $648 million at an average price of $11.52. Investors were pleased with the result as Robinhood gained 25% in extended trading hours in reaction to the news. In addition, Bankman-Friend noted that he has no plans to influence or control Robinhood with the stake purchase. Instead, he saw the online brokerage as an “attractive investment.”

Robinhood followed up on Bankman-Fried’s statement, emphasizing that HOOD is indeed an attractive investment. In a tweet, the company boasted of an impressive customer base, introducing new products, and an efficient team to consistently deliver.

Robinhood’s Performance

Apart from growing 26.84% in the last five days, Robinhood has been steadily recording losses. The company dropped almost 49% since January and another 28.81% in the last three months. Over the past month, HOOD has lost 12.14%. During Q1, Robinhood said its monthly active users reduced from 17.7 million to 15.9 million YoY. The company added that about 18% of its net revenues during the quarter were from crypto-related transactions.

Business News, Deals News, Market News, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

Related Articles