14.6 C
Munich
Tuesday, May 24, 2022

Robinhood shares leap 25% after crypto CEO Sam Bankman-Fried acquires stake

Must read

Vlad Tenev, CEO and co-founder Robinhood Markets, Inc., is displayed on a display screen throughout his firm’s IPO on the Nasdaq Market web site in Times Square in New York City, U.S., July 29, 2021.

Brendan McDermid | Reuters

Robinhood shares jumped 24.9% on Friday, a day after the CEO of a significant crypto alternate took a stake within the retail investing app.

An entity known as Emergent Fidelity Technologies took a 7.6% stake in Robinhood price $648 million earlier this month, in keeping with a doc filed with the Securities and Exchange Commission. The doc additionally confirmed Sam Bankman-Fried, who leads the Bahamas-based crypto firm FTX, is the only real director and majority proprietor of Emergent. The stake makes Emergent the third-largest Robinhood shareholder, FactSet knowledge exhibits.

Shares of Robinhood closed at $8.56 on Thursday, the day the doc was filed. That was about 77% under the corporate’s July IPO value.

Bankman-Fried acquired the shares as a result of they “represent an attractive investment,” in keeping with the submitting, which additionally says he “intends to hold the Shares as an investment” and would not have “any intention of taking any action toward changing or influencing the control of the Issuer.”

He could “from time to time engage in discussions” with administration, nevertheless.

“Of course we think it is an attractive investment too,” Robinhood’s communications workforce mentioned in a tweet Thursday night in response to the information of the funding.

Bankman-Fried may evaluation “options for enhancing stockholder value through, among other things, various strategic alternatives or operational or management initiatives,” in keeping with the doc. It additionally mentioned he might purchase extra shares.

FTX is among the largest crypto exchanges on the earth. It gives derivatives merchandise for extra refined merchants, in addition to spot buying and selling, and has turn into a rival to huge names similar to Coinbase and Binance. It gives providers within the U.S. by a separate entity, FTX U.S.

Though Robinhood bought its begin in inventory buying and selling, it noticed large success when it rolled out its crypto buying and selling platform in 2018. Crypto buying and selling has since turn into vital for the corporate’s backside line. In the autumn, Robinhood revealed its testing a crypto pockets and mentioned the waitlist for it had topped 1 million prospects.



httpspercent3Apercent2Fpercent2Fwww.cnbc.compercent2F2022percent2F05percent2F13percent2Frobinhood-shares-jump-after-crypto-ceo-sam-bankman-fried-acquires-stake.html

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article