Today, several people with knowledge of the situation informed Bloomberg News that CEO Sam Bankman-Fried is considering how to acquire the stock and cryptocurrency trading software.
Another unnamed source claims that FTX has not yet made a final choice and that Robinhood has not yet been formally contacted with an offer.
FTX may purchase Robinhood
On hearing about the possible takeover, HOOD shares soared, rising approximately 14% to $9.12 as of this writing. Just a few weeks ago, the stock hit an all-time low of $6.89.
Although he and FTX are “enthusiastic about Robinhood’s commercial possibilities and various ways we may work with them,” Bankman-Fried said in a statement to Decrypt shortly after the story surfaced that “No active M&A conversations about Robinhood are currently taking place,”
Bankman-Fried purchased 7.6 percent of Robinhood last month, declaring at the time that he had no plans to use his own to influence or affect the company’s course.
Since reaching a top of $55 shortly after its IPO in July of last year, shares of the well-known trading app have slowly decreased. HOOD was downgraded by Goldman Sachs from “neutral” to “sell” in April.
Only a few weeks later, the corporation fired hundreds of workers, blaming a decline in retail investment activity throughout the world.
אויך לייענען - Alec Monopoly, אַ סטריט קינסטלער, וועט מעלדונג NFTs אין שוטפעס מיט היפּערמינט
However, their fortunes might be changing. While Robinhood’s income decreased overall in the first quarter of 2022, one sector continued to expand:
“The status of HOOD was recently upgraded back to “neutral” by Goldman Sachs due to increasing interest rates, which the firm anticipates would “help decrease HOOD’s losses to a tolerable level.”
FTX was reportedly in talks to buy a share in the troubled crypto lending startup BlockFi on Friday, according to a report.
BlockFi had earlier last week obtained a $250 million line of credit from Bankman-business.
Fried’s Many believed the loan to be a “bailout” since it will be paid back to clients before FTX is. The loan will be subordinate to client cash.
Source: https://www.thecoinrepublic.com/2022/06/28/crypto-breaking-ftx-to-buy-robinhood/