A lady holds a smartphone with the Robinhood brand within the background.
Rafael Henrique | Sopa Pictures | Mild Rocket | Getty Pictures
Robinhood shares jumped on Monday after Bloomberg Information reported crypto alternate FTX was contemplating buying the buying and selling app.
The inventory soared 14% to its session excessive and was briefly halted after a report that FTX was discussing a takeover plan internally, however no provide has been made to Robinhood, Bloomberg Information reported, citing folks acquainted with the matter.
Sam Bankman-Fried, CEO of FTX, denied the report later Monday, nonetheless.
“We’re enthusiastic about Robinhood’s enterprise prospects and potential methods we may accomplice with them, and I’ve at all times been impressed by the enterprise that Vlad and his workforce have constructed,” Bankman-Fried mentioned. “That being mentioned there are not any lively M&A conversations with Robinhood.”
Robinhood declined to remark.
Final month, Bankman-Fried took a 7.6% stake in Robinhood value $648 million, based on a submitting with the Securities and Alternate Fee. The submitting mentioned Bankman-Fried acquired the shares within the perception that they “signify a pretty funding.”
Shares of Robinhood have dropped about 48% this 12 months amid shrinking income and declining customers. In the course of the first quarter, its income fell 43% from a 12 months in the past to $299 million. Robinhood mentioned its month-to-month lively customers declined to fifteen.9 million, down from 17.7 million a 12 months in the past.
FTX is without doubt one of the largest crypto exchanges on the earth and affords derivatives merchandise for extra refined merchants in addition to spot buying and selling. FTX has turn out to be a rival to Coinbase and Binance, although it does not provide its providers within the US
In latest weeks, Bankman-Fried’s corporations signed offers to bail out small gamers within the crypto house. FTX agreed to supply crypto lender BlockFi with a $250 million revolving credit score facility. Alameda, his quantitative buying and selling agency, dedicated $500 million in financing to Voyager Digital, a crypto brokerage.
Robinhood attracted an enormous variety of retail traders in the course of the pandemic buying and selling growth, whereas the younger dealer additionally skilled success when it rolled out its crypto buying and selling platform in 2018. Crypto buying and selling has since turn out to be necessary for the corporate’s backside line when its inventory buying and selling exercise slowed down .
Final fall, Robinhood mentioned it was testing a crypto pockets and revealed that the waitlist for it had topped 1 million prospects.