Robinhood shares rise more than 20% after Sam Bankman-Fried buys 7.6% stake

Sam Bankman-Freud, CEO of the FTX cryptocurrency exchange, took a 7.6% stake in Robin Hoodaccording to a submission to the Securities and Exchange Commission on Thursday.

The shares of the investment company jumped 36% at one point in long-term trading before withdrawing. They recently increased by about 25%.

In regular trading on Thursday, the shares reached the lowest level of all time. Robinhood ended the session at a price of $ 8.56, about 77% of the price of the IPO last July.

According to the document, Emergent Fidelity Technologies took a stake of $ 648 million in Robinhood. Bankman-Freud is the sole director and majority owner, it said.

Sam Bankman-Freud, CEO of FTX US Derivatives, testified during a hearing on the House Committee on Agriculture entitled Changing Market Roles: The FTX Proposal and Trends in New Clearing House Models at Longworth Building on Thursday , May 12, 2022

Tom Williams CQ-Roll Call, Inc. | Getty Images

The document says Bankman-Fried acquired the shares in the belief that they “represent an attractive investment”. “Reporting entities intend to hold the Shares as an investment and do not currently have any intention of taking any action to change or influence the Issuer’s control,” it said. Although the documentation also states that he may “occasionally participate in discussions” with management.

“Of course, we think it’s also an attractive investment,” said Robinhood’s communications team. tweet Thursday night in response to investment news.

Bankman-Fried has no plans to take any further action at this time, but at some point, if circumstances change, it may reconsider “options to increase shareholder value through, inter alia, various strategic alternatives or operational or management initiatives”. , according to the document. It also says it may acquire additional shares.

FTX, where Bankman-Fried is the CEO, is one of the largest crypto exchanges in the world and offers derivative products for more sophisticated traders as well as spot trading. FTX has become a rival to Coinbase and Binance, although it offers its services in the United States

Robinhood began allowing retail investors to invest in stocks, but was a huge success when it launched its crypto trading platform in 2018. Since then, crypto trading has become important to the company’s end result. In the fall, Robinhood revealed its own crypto wallet testing and said the waiting list for him exceeded 1 million customers.

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