Robinhood shares surged over 30% after crypto billionaire Sam Bankman-Fried disclosed a 7.6% stake in the trading platform

Robinhood shares surged over 30% after crypto billionaire Sam Bankman-Fried disclosed a 7.6% stake in the trading platform

Sam Bankman-Fried FTX CEO Crypto

Crypto billionaire Sam Bankman-Fried took a 7.6% stake in Robinhood Markets.FTX

  • Crypto billionaire Sam Bankman-Fried announced that he owns about 56.3. million shares of Robinhood Markets.

  • News of his 7.6% stake in Robinhood sent shares of the trading platform up over 30% in late trade.

  • Bankman-Fried is the founder and CEO of cryptocurrency exchange FTX.

Robinhood Markets shares were up more than 30% in late trade after crypto billionaire Sam Bankman-Fried announced a 7.6% stake in the online broker.

Bankman-Fried, through his investment firm Emergent Fidelity Technologies, acquired about 56.3 million shares in the Robinhood markets, according to a regulatory filing with the US Securities and Exchange Commission (SEC) on Thursday.

That makes the 30-year-old’s stake worth about $482 million based on Robinhood’s closing price of $8.56. Bankman-Fried paid approximately $648.3 million for the shares, according to the SEC filing.

Bankman-Fried is the founder and CEO of cryptocurrency exchange FTX. He has a net worth of $11 billion, according to the Bloomberg Billionaires Index.

California-based Robinhood was founded in 2013 but burst into the limelight last year due to a meme stock craze. It had 22.7 million users at the end of 2021 — an 81% year-over-year increase, the company said when it announced its full-year results in January.

The commission-free trading platform lost $3.7 billion in 2021. The stock, which debuted at $38 per share in July 2021, is down over 70% since its IPO. Revenue for the first quarter of 2022 fell 43% year over year as trading activity slowed, the company said in April. It has flagged crypto as a growth area.

Robinhood’s stock price closed Thursday up 5.03% at $8.56. They were last up about 24% to $10.60 a share in after-hours trading after rising as much as 37% to $11.70.

Read the original article on Business Insider

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