After Bloomberg News reported that cryptocurrency exchange FTX was contemplating acquiring the trading app, Robinhood shares increased on Monday. According to a story that FTX was internally debating a takeover strategy, the stock rose 14% to its session high and was momentarily stopped, although no offer has been made to , according to sources familiar with the situation who spoke to Bloomberg News.
Later on Monday, Sam Bankman-Fried, CEO of FTX, refuted the allegation. Bankman-Fried added, “I have always been impressed by the company that Vlad and his team have developed and we are thrilled about future possibilities and various ways we may work with them. That said, there aren’t any ongoing M&A discussions with Robinhood.
Robinhood opted not to respond. According to a statement with the Securities and Exchange Commission, Bankman-Fried purchased a $748 million 7.6 percent interest in last month. According to the document, Bankman-Fried bought the shares because they “offer an interesting investment. “shares have decreased by around 48% this year due to dwindling users and income. Its sales for the first quarter, which was $299 million, decreased by 43% from the same period last year. According to Robinhood, its monthly active users fell from 17.7 million to 15.9 million.
One of the biggest cryptocurrency exchanges in the world, FTX also provides spot trading and derivatives products for more experienced traders. FTX, which doesn’t provide its services in the United States, has emerged as a competitor to Coinbase and Binance. Bankman-businesses Fried’s have agreed to agreements that will help tiny crypto players. FTX agreed to provide BlockFi a $250 million revolving credit line as a loan for cryptocurrencies. His quantitative trading company Alameda provided $500 million in funding to the cryptocurrency brokerage Voyager Digital.