FTX Rejects Claims That It Will Acquire Robinhood
Robinhood’s stock increased by 15% after Bloomberg reported that FTX was interested in acquiring the popular trading app.
Cryptocurrency exchange FTX o n Monday dismissed a rumor that the company is considering acquiring traditional finance brokerage Robinhood.
According to a firm spokeswoman, “there are no active M&A conversations” with the retail-focused brokerage that mostly trades equities and options, as well as a relatively modest crypto business.
According to Bloomberg, citing unidentified sources, Sam Bankman-Fried — who has been on an acquisition binge throughout crypto’s rocky period — was involved in discussions to acquire the commission-free investing platform.
According to Bloomberg, no formal buyout offer has been received, and FTX — or Robinhood — may choose not to pursue the acquisition.
The spokesperson said in a statement:
“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.”
Robinhood stock rose about 15% after Bloomberg reported on FTX’s buyout, but has subsequently dropped to below $9 in after-hours trading.
According to a May SEC filing, Bankman-Fried previously purchased a 7.6% stake in the popular trading app, causing Robinhood shares to rise by 30%.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews