FTX could buy Robinhood. But it depends on who you ask.
Several people familiar with the matter have said Bloomberg News today, CEO Sam Bankman-Fried is deliberating internally on how to buy the stock and crypto trading app. According to another anonymous source, Robinhood has yet to be officially approached with an offer, and no final decision has been made at FTX.
Shares of HOOD soared on news of the potential acquisition, up about 14% to $9.12 at the time of this writing. The stock hit an all-time low of $6.89 just a few weeks ago.
However, shortly after the news broke, Bankman-Fried told Decrypt in a statement that while he and FTX are “excitedregarding Robinhood’s business prospects and potential ways we can partner with them”, there is “no active conversation about mergers and acquisitions about Robinhood going on”.
Last month, Bankman-Fried bought 7.6% of Robinhoodclaiming at the time that he had no intention of using his stake in the company to change or influence its direction.
Shares of the popular trading app have steadily fallen since peaking at $55 shortly after its IPO last July. In April, Goldman Sachs HOOD downgraded from “neutral” to “sell”. A few weeks later, the company laid off hundreds of employeesciting a global slowdown in retail investment activity.
But these fortunes can be reversed. While the first quarter of 2022 saw Robinhood’s revenue down at all levels, there was one category that continued to grow: crypto. And just this morning, Goldman Sachs issued a revised stance on HOOD, upgrading its status to “neutral” in light of higher interest rates that the bank says will “help reduce HOOD’s losses to a manageable level.” “.
Friday, a report revealed that FTX was in talks to acquire a stake in beleaguered crypto lending firm BlockFi, which earlier last week secured a $250 million line of credit from Bankman-Fried’s firm. Many understood the loan, which will be contingent on customer funds and repay customers before FTX is repaid, to amount to a “bailout”.
Want to be a crypto expert? Get the best of Decrypt straight to your inbox.
Get the biggest crypto news + weekly digests and more!