Published: June 29, 2022
According to Bloomberg’s report, FTX, a reputable cryptocurrency exchange, is considering a purchase of the large trading platform, Robinhood.
However, Sam Bankman-Fried, the CEO of the exchange, denied the claims in that report, stating that, although they’re looking for potential ways they could partner with Robinhood, there currently aren’t any active acquisition talks going on with them.
The CEO of FTX disclosed his 7.6% stake at Robinhood in May. The company was worth about $648 million then, and this type of filing can sometimes indicate someone who acquires more than 5% of the company wants to take it over.
While there are over 8,000 cryptocurrencies available in the market, it is currently entering a very volatile period. But FTX has been pivotal in providing bailouts to blockchain companies while they’re struggling.
It extended $250 million in revolving credits to BlockFi, a trading platform, and lent $500 million to Voyager Digital.
The worldwide economic turmoil has also affected Robinhood. More precisely, its number of monthly users suffered a 10% decline in March compared to last year, and its revenue also went down by a staggering 48%.
Robinhood became an instant hit within the cryptocurrency community and among the young investors due to its commission-free trades, as well as traditional stocks and investments made in crypto.
The platform has been working on expanding its offerings since the initial launch of the option in 2018. It also launched its own crypto wallet earlier this month. It went public just last year amidst the viral news of the soaring stocks of GameStop and AMC.
According to Bloomberg, Robinhood’s current value is about $7.4 billion.