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.

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