Sam Bankman-Fried reveals stake in trading app Robinhood
On Thursday, Samuel Bankman-Fried, CEO and Founder of crypto exchange platform FTX, disclosed a 7.6 percent holding in Robinhood Markets Inc, seizing on the trading app’s share price weakness to create a position.
FTX CEO reveals stake in trading app Robinhood
The 30-year-old crypto millionaire stated in the report that he purchased the shares because he thought they were a great investment and also that he presently has no plans to modify or influence Robinhood’s governance.
Robinhood rose to prominence for its user-friendly trading software, which introduced a new wave of investors to the stock market, most notably with the meme-stock craze which sent GameStop soaring early 2021. However, cryptocurrency has become a significant element of its operations.
In after-hours trading, news of the purchase drove Robinhood shares up more than 30%. As of this right now, the stock has dropped somewhat to $10.72. As new investors rushed to the share market last year, the platform has gained millions of members.
However, it has failed to retain them; monthly active users declined 10% to 15.9 million in March, from 17.7 million in March of 2021. The company cut off 9% of its workforce late last month.
The stock of Robinhood has dropped since its growth has halted dramatically. It recorded a greater loss than analysts predicted for the first quarter of this year. According to the business, volatility in the stock and cryptocurrency markets drove casual investors away, or at the very least rendered them extra cautious and less inclined to make huge bets.
The purchase comes amid when Robinhood’s fortunes and sales have been on the slide; Robinhood stocks hit an all-time low of $7.71 only hours before news of Bankman-investment Fried’s in the firm broke.
Bankman-Fried indicated that he had no intention of changing or influencing the platform path, and that he bought his stock in the firm because it is an appealing investment. Robinhood’s communication staff was quick to respond, tweeting, “Of course we think it is an attractive investment too.”
Crypto have lately plummeted as a result of investors’ unwillingness to keep risky investments at a moment when the Federal Reserve is vigorously combating inflation. The market was also roiled by a drop in prices of a crucial stablecoin tethered to the dollar. On Thursday, bitcoin plummeted to its lowest point since December 2020.
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