Home Finance FTX chief takes stake in on-line brokerage Robinhood

FTX chief takes stake in on-line brokerage Robinhood

FTX chief takes stake in on-line brokerage Robinhood

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Sam Bankman-Fried, the billionaire founding father of cryptocurrency trade FTX, has introduced a 7.6 per cent stake within the struggling retail brokerage Robinhood, calling it an “enticing funding”.

Bankman-Fried stated in a securities submitting he has no “intention of taking any motion towards altering or influencing the management of [Robinhood]” and purchased the stake purely as an funding. Nonetheless, he left open the potential of calling for the corporate to contemplate “strategic options or operational or administration initiatives”.

Shares in Robinhood rose as a lot as 32 per cent in after-hours buying and selling following the announcement.

Bankman-Fried bought $648mn in Robinhood shares at a mean value of $11.52. The purchases disclosed by Bankman-Fried started in mid-March and continued by way of Wednesday, when he bought $27.5mn in shares, in response to a regulatory submitting.

Robinhood went public in July in a hotly anticipated debut. However shares within the brokerage have stuttered as retail enthusiasm for inventory buying and selling has faltered in latest months. Shares within the dealer had fallen greater than 70 per cent since then, forward of Thursday’s disclosure.

Robinhood has pushed closely into cryptocurrencies as income from fairness buying and selling has tumbled, launching crypto wallets on its platform and including new currencies, bringing it extra consistent with rivals comparable to Coinbase. It plans to broaden internationally as a crypto brokerage.

Bankman-Fried has beforehand spoken concerning the energy of the dealer’s model: “Robinhood barely even must promote; their identify conveys their model and message with out the necessity for any extra color,” he had written on Twitter.

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