0x0 25 Trading App Robinhood Soars 15% After Rumors of Crypto Exchange FTX Acquisition

Trading App Robinhood Soars 15% After Rumors of Crypto Exchange FTX Acquisition

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– Shares of popular stock trading app Robinhood surged higher on Monday after reports that billionaire Sam Bankman-Frieds cryptocurrency exchange, FTX, is considering a deal to buy the company just over a month after he first disclosed a stake.
– The news comes just over a month after FTXs billionaire founder, Bankman-Fried, disclosed a sizable stake in Robinhood.
– One of the largest crypto trading exchanges in the world rivaling the likes of Coinbase and Binance, FTX is internally debating how to pursue a full acquisition of Robinhood, Bloomberg first reported on Monday, citing people familiar with the matter.
– Shares of Robinhood spiked on the news, rising as much as 18% before getting halted for trading shortly at approximately 3:10 p.m. ET.
– The stock held onto most of its gains after trading resumed at 3:15 p.m., still rising by roughly 15% on Monday.
– Robinhood is yet to receive a formal takeover offer, while FTX has not made a final decision on whether to pursue the deal and could still opt out, according to Bloomberg.
– The report comes just over a month after billionaire Sam Bankman-Fried, the founder and CEO of FTX, first disclosed a 7.6% stake in Robinhood worth roughly $650 million, according to regulatory filings.
– Bankman-Fried at the time called Robinhood shares an attractive investment, causing the stock to soar over 20% in a single day on May 14.
– Shares of Robinhood have largely struggled amid the wider market selloff in the first half of 2022, falling over 50% compared to the S&P 500s roughly 20% decline.
– Investors have soured on the stock as the company continues to struggle with depressed user growth on its platform as well as declining trading revenues.
– Robinhood shares now trade at nearly $10 per share, still a far cry from a record high of $85 per share last August.
– Thats how much Bankman-Fried is worth, according to Forbes estimates. After launching FTX in 2019, he is now one of the richest people in crypto, with his company reaching a $40 billion valuation at the beginning of 2022.

 

 

Trading App Robinhood Soars 15% After Rumors of Crypto Exchange FTX Acquisition
Trading App Robinhood Soars 15% After Rumors of Crypto Exchange FTX Acquisition 3

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