Business

Sam Bankman Fred Buys a Stake in Troubled Robinhood

Robin Hood shares soar 25% after FTX CEO Sam Bankman Fred discloses a stake in it

Robin Hood’s shares jumped 24.9% a day after the CEO of popular crypto exchange FTX bought a stake in the retail investment app.

A report from the Securities and Exchange Commission showed that a unit called Emergent Fidelity Technologies acquired a 7.6% stake in Robin Hood for as much as $648 million earlier this month. Headquartered in the Bahamas, he is the sole director and majority owner of Emergent’s business unit, which became Robin Hood’s third largest shareholder after it purchased the stake. Read more [Robinhood’s Revenue Falls as User Numbers Dwindle].

Robinhood shares closed at $8.56 per share on the day the file was published, 77% below the company’s IPO price last July. Read more [Robinhood Seeks $35 Billion Giant US IPO].

Fred Bankman bought the shares because they “represent an attractive investment opportunity,” according to the report, in which he also says that he intends to keep the shares as an investment in the company and has no intention of moving toward change or affecting Robin Hood’s control and management.

Noting that Fred Bankman can review options to amplify the value of his contribution to the company through a variety of methods and strategic or operational alternatives or even management initiatives, as well as the possibility of buying more Robin Hood shares.

FTX is one of the largest cryptocurrency exchanges in the world, offering live trading and crypto-asset derivative products to advanced traders interested in such products. Via a separate business unit called FTX US.

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