Home Technology Robinhood shares pop greater than 20% after Sam Bankman-Fried buys 7.6% stake

Robinhood shares pop greater than 20% after Sam Bankman-Fried buys 7.6% stake

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Robinhood shares pop greater than 20% after Sam Bankman-Fried buys 7.6% stake

Sam Bankman-Fried, the CEO of crypto change FTX, has taken a 7.6% stake in Robinhood, in line with a Thursday submitting with the Securities and Exchange Commission.

Shares of the investing firm jumped 36% at one level in prolonged buying and selling earlier than pulling again. They had been final up about 25%.

In common buying and selling Thursday the inventory hit an all-time low. Robinhood ended the session priced at $8.56, about 77% away from its IPO value final July.

According to the doc, Emergent Fidelity Technologies took a stake price $648 million in Robinhood. Bankman-Fried is the only director and majority proprietor, it says.

Sam Bankman-Fried, CEO of FTX US Derivatives, testifies through the House Agriculture Committee listening to titled Changing Market Roles: The FTX Proposal and Trends in New Clearinghouse Models, in Longworth Building on Thursday, May 12, 2022.

Tom Williams | CQ-Roll Call, Inc. | Getty Images

The doc goes on to say Bankman-Fried acquired the shares within the perception that they “represent an attractive investment.” “The Reporting Persons intend 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,” it says. Though the submitting additionally mentioned he might “from time to time engage in discussions” with administration.

“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 presently has no intention to take different actions however sooner or later if circumstances change, he might evaluation “options for enhancing stockholder value through, among other things, various strategic alternatives or operational or management initiatives,” in line with the doc. It additionally says he might purchase further shares.

FTX, the place Bankman-Fried is CEO, is likely one of the largest crypto exchanges on this planet and affords derivatives merchandise for extra refined merchants in addition to spot buying and selling. FTX has develop into a rival to Coinbase and Binance, although it would not supply its companies within the U.S.

Robinhood acquired its begin permitting retail traders to spend money on shares however noticed big success when it rolled out its crypto buying and selling platform in 2018. Crypto buying and selling has since develop into necessary 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 clients.



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