Sam Bankman-Fried disclosed a 7.6% stake in Robinhood.
Following the report, Robinhood surged over 14%.
The cryptocurrency exchange FTX said to consider acquiring the digital trading platform Robinhood, a prominent Magazine reported on Monday.
Robinhood has not yet received a formal notice from FTX of any such acquisition and there are no active Merger and acquisitions discussions with the retail-focused brokerage.
The report of an FTX acquisition comes just over a month after Sam Bankman-Fried, the CEO and founder of FTX, disclosed a 7.6% stake in Robinhood for $648 million. This position was worth more than $513 million as of Monday’s close.
According to the report no formal takeover offer has been received and the spokesperson said;
We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built. That being said there are no active M&A conversations with Robinhood.
FTX Recent Actions
According to a regulatory filing, Bankman-Fried purchased approximately 56.3 million shares in the Robinhood online brokerage through his Emergent Fidelity Technologies. Also, Bankman-companies FTX and Alameda Research have recently offered loans to crypto firms in financial distress.
Furthermore, FTX extended a $250 million credit line to crypto lender BlockFi, meanwhile, Alameda Research, and has provided Canadian crypto exchange Voyager with a total line of credit in cash and cryptocurrency worth more than $500 million.
Following the report, Robinhood surged over 14% on Monday, according to CMC, from its peak the total crypto market has fallen around 62% from $3 trillion to $935 billion at the time of writing