FTX CEO Sam Bankman-Fried buys 7.6% stake in Robinhood

Sam Bankman-Fried buys Robinhood shares

FTX’s Young Billionaire Platform CEO Sam Bankman-Fried Reportedly Bought 7.6% stake in Robinhood on May 2according to a document from the United States Securities and Exchange Commission (SEC).

With $648 million invested in the American financial services company, i.e. 56 million sharesSBF becomes its third largest shareholder. The purchase was disclosed via a Form 13D, used when investors plan to play an active role in the relevant company, including for example through a position on the board of directors.

The CEO of FTX revealed that at the moment this is not on the agenda, but that it was also not excluded in the longer term.

This new investment could prove decisive for the future of Robinhood. Indeed, a few hours before the announcement of the purchase of these shares by Sam Bankman-Fried, the shares of the company had reached 7.71 dollars, be their lowest floor.

However, the price rose following the announcement, the shares trading currently at $10.70 on the Nasdaq stock exchange.

SBF said in the SEC filing that its stake in Robinhood was purely financial and that she ” represents an attractive investment “, to which Robinhood replied” of course, we also think it’s an attractive investment via a tweet.

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Robinhood present in cryptocurrencies

Since it began to direct its service towards the cryptocurrency market, the Robinhood company has gradually able to capture the interest of a growing number of users. Thus, from 2020 to 2021, this number has almost doubled, from 12.5 to 22.7 million.

That being said, the company seems to be struggling to keep its users, and revenues are not following: the number of monthly active users has fell 10% in March compared to the same period last year, or 15.9 against 17.7 million. As a result, Robinhood had to lay off 9% of its employees last month.

However, the company has been full of new announcements since the beginning of this year, for example with the release of its “Cash Card”a payment card designed to attract a young audience, which in particular makes it possible to round off daily transactions to the higher euro in order to save easily.

More recently, it announced that it wanted to acquire Ziglu, a UK-based cryptocurrency exchange, demonstrating its desire to establish itself firmly on British soil.

👉 Read also: Elon Musk’s takeover of Twitter suspended due to fake accounts

Sources: SEC document, TradingView Robinhood Markets, Statista

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About the Author : Maximilien Prue

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
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