FTX Cuts Down Claims That It Plans To Acquire Robinhood

Robinhood’s stock surged by 15% after Bloomberg reported that FTX was looking to acquire the popular trading app

June 27, 2022 04:38 pm

key takeaways

Bloomberg reported digital assets exchange FTX is planning to purchase the TradFi-focused brokerage
Bankman-Fried previously purchased a 7.6% stake in the popular trading app

Crypto exchange FTX on Monday batted down a report that the company is angling to buy traditional finance brokerage Robinhood.

A spokesperson for the company told Blockworks “there are no active M&A conversations” with the retail-focused brokerage that predominantly trades equities and options — in addition to a relatively smaller crypto business.

Bloomberg, citing anonymous sources, reported Sam Bankman-Fried — who has been on an acquisition spree throughout crypto’s turbulent time — was involved in the conversations to snap up the commission-free investing platform

Bloomberg reported that no formal takeover offer had been received and that FTX — or Robinhood — could choose to opt out of pursuing the deal.

“We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built,” the spokesperson said in a statement. “That being said there are no active M&A conversations with Robinhood.”

Robinhood stock surged by almost 15% soon after Bloomberg reported on FTX’s takeover but has since seen a price drop to below $9 in after-hours trading.

Bankman-Fried previously purchased a 7.6% stake in the popular trading app, according to a May SEC filing, leading Robinhood shares to soar by some 30%.

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