CEO of FTX Crypto Exchange Buys Big Stake in Robinhood | Business News
NEW YORK (AP)-The CEO of cryptocurrency exchange FTX has bought a 7.6% stake in Robinhood Markets, according to a filing with U.S. regulators on Thursday.
Samuel Bankman-Fried said in the filing that he bought the shares thinking it was an attractive investment and that currently he has no plans to change or influence control of Robinhood.
Robinhood is known for its easy-to-use trading app, which brings in a new generation of stock market investors, perhaps best known for the meme-stock frenzy that sent GameStop soaring early last year. But crypto has become a big part of its business.
About un-quarters of the revenue Robinhood made during the first three months of the year from trading with customers from cryptocurrencies. Robinhood has strengthened its crypto business, launched crypto wallets for its customers and added new coins to be sold on its platform.
Bankman-Fried built its stake in Robinhood through a company called Emergent Fidelity Technologies, which continued to buy shares from March 14 through Wednesday. The stock price fell during that time, as it typically touched $ 85 shortly after its debut on the Nasdaq in the summer of 2021.
Political Cartoons
Robinhood’s stock declined due to the slowdown in its growth. It reported a bigger loss for the first quarter of this year than analysts had expected. The company says volatility in stock and crypto markets is alienating casual investors, or at least making them more cautious and less likely to do big trades.
Robinhood stock jumped nearly 27% after trading hours Thursday following the disclosure. It rose 5% earlier during the regular trading session to close at $ 8.56.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.
