Shares of popular trading platform Robin Hood jumped as reports spread that cryptocurrency exchange FTX is planning to acquire the trading app, as the shares jumped 14% to the highest level during the trading session and paused due to pressure after Bloomberg reported that FTX was discussing an internal takeover plan but made no direct offer to Robin Hood.
Last month, FTX CEO Sam Bankman-Fried purchased a 7.6% stake in Robin Hood for $648 million, the Securities and Exchange Commission reports, moreover, the report stated that Bankman-Fried had bought the stake, believing it to be an “attractive investment”. Read more [Sam Bankman Fried Buys a Stake in Troubled Robinhood].
Robin Hood’s shares have fallen by 48% since the beginning of the year so far, amid shrinking revenues and declining numbers of users. During the first quarter, the company’s revenues fell by 43% compared to the same period a year ago, to only $299 million, and Robin Hood revealed that the number of monthly active users has It fell to $15.9 million from $17.7 million a year ago. Read more [Robinhood’s Revenue Falls as User Numbers Dwindle].
FTX is one of the largest cryptocurrency exchanges in the world and offers a variety of products to specialized traders in addition to spot trading services. FTX is starting to look like a competitor to giants like Coinbase and Binance, but it does not offer its services in the United States.
Robin Hood has attracted a large number of retail investors during the explosion of the trading market during the pandemic, especially through its cryptocurrency trading platform, which has been a huge success since its launch in 2018. Read more [The Market Capitalization Touches $1T as BTC Reclaims $21K].