FTX might soon be the proud owner of no-commission trading platform Robinhood as the cryptocurrency exchange is reportedly weighing an acquisition bid.
FTX Mulling Bid For Robinhood
Multiple sources familiar with the matter told Bloomberg that Sam Bankman-Fried is holding internal deliberations regarding how to purchase Robinhood. The insiders suggest that discussions within FTX are still ongoing. No final decision has been reached yet and FTX could decide against pursuing a deal, the report on Monday said. Still, FTX is said to be taking the deal seriously.
Just last month, Bankman-fried purchased a substantial 7.6% stake in the crypto and stock trading app. At the time, he stressed that he didn’t have any intentions of influencing Robinhood’s direction and that he acquired his stake in the company because it “represents an attractive investment.”
News of the potential acquisition today sent Robinhood shares soaring by over 15% — a move that resulted in trading being temporarily suspended. Despite being up on Monday, the company’s shares are still 74% short of their IPO level.
The possible buy comes at a time when the company has shed at least three-quarters of its value since launching on Nasdaq last July. Robinhood also laid off a massive chunk of its employees just weeks ago, citing a global market downturn.
FTX Is Investing In Other Firms
Ranked by CoinGecko as the second-biggest fully trusted exchange, FTX appears to be in a strong position despite the vicious crypto winter. While most crypto firms are cutting their workforce, Bankman-Fried clarified earlier this month the company will continue growing and onboarding new staff.
Additionally, FTX has taken an interest in other crypto firms. Reports days ago revealed that FTX is in talks to acquire a stake in BlockFi after the exchange issued a $250 million line of credit to the embattled lending firm.
In other deals this year, Bankman-Fried’s Alameda Research acquired a stake in crypto trading platform Voyager Digital, while FTX purchased Bitvo for an undisclosed amount.