FTX may be looking to buy Robinhood according to sources. Individuals knowledgeable on the matter said FTX CEO, Sam Bankman-Fried is contemplating internally about how to purchase the stock and trading app. According to different sources, the FTX CEO hasn’t tabled a formal offer.
The company’s shares skyrocketed by 14% due to the news of the potential acquisition. The share which was at an all-time low just a few weeks ago moved from $6.89 to $9.12.
Bankman-Fried in an interview with Decrypt said they are excited about the potential acquisition of Robinhood but no conversations have taken place yet. Just last month, 7.6% of Robinhood shares were bought by Bankman-Fried who stated he had no intentions of influencing a change in the company’s direction.
After reaching an all-time high at $55 per share, Robinhood shares declined in July last year resulting in the company laying off hundreds of its staff.
Robinhood’s has greatly improved over the past few months. While the company’s revenue reduced, Its crypto category has been growing.
A report revealed FTX was negotiating to acquire a stake in BlockFi, a crypto lending firm which secured a whooping $250 million in credit last week from Bankman-Fried’s company. The loan, according to sources, will be subordinate to client funds. Customers will be repaid before FTC gets paid.
It is important to note that no decision has been formally made by FTX on the acquisition of Robinhood.
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