FTX CEO said he does not have any intentions of taking control of Robinhood
Samuel Bankman-Fried, the founder and CEO of crypto exchange platform FTX, on Thursday, revealed that he took a 7.6% stake in Robinhood Markets Inc (NASDAQ: HOOD).
In a filing with the Securities and Exchange Commission, Bankman-Fried said he now owns more than 56 million shares, worth over $648 million, “in the belief that the Shares represent an attractive investment,” making him the third-largest shareholder in Robinhood.
Shares of the discount brokerage platform jumped more than 32.5% in the extended trading hours following the disclosure.
Robinhood’s communication team tweeted that it is “an attractive investment.”
“We have the best customer base, are introducing great new products, and we have the team to deliver. Our journey is just beginning,” the team wrote on Twitter.
No intention of merger
Bankman-Fried, in the regulatory filing, said he started building his stake in Robinhood in the middle of March and does not have any intention “to hold the Shares as an investment, and do not currently have any intention of taking any action toward changing or influencing the control of the Issuer.”
However, he also mentioned that it is possible that his position may evolve, and he could end up pushing for changes.
Reuters reported that Bankman-Fried had not informed Robinhood of any plans to merge it with his FTX platform, citing a person familiar with the matter.
While FTX, which was founded in 2019, was valued at $32 billion in a February funding round, and Bankman-Fried himself is worth $21 billion, Robinhood’s market value stands around $7.5 billion.
Robinhood has been struggling to meet Wall Street expectations since its IPO last year and has yet to turn a profit.
Picture Credit: Yahoo Finance
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