Robinhood soars after 30-year-old crypto billionaire takes over his stake

Robinhood soars after 30-year-old crypto billionaire takes over his stake

But there may be hope on the horizon.

Bankman-Fried, who runs startup FTX, a cryptocurrency exchange based in the Bahamas, said in the filing that he bought Robinhood stock because he believes it “represents an attractive investment.” He added that his stake is intended as a passive investment and that he “currently has no intention of taking any action to change or affect control of” Robinhood.

FTX has taken the crypto world by storm, The company has attracted more than a million users since launching in 2019, so as a strategic investor in Robinhood, the founder could help give the broker more credibility, not to mention a well-funded backer at his disposal .
Privately held FTX recently raised new funds valuing the company at $32 billion. According to Forbes, Bankman-Fried, who is also the founder of crypto trading firm Alameda Research, is worth $21.2 billion.
Welcome to the Crypto Super Bowl
FTX had no further comment on Bankman-Fried’s Robinhood stake. Robinhood issued a statement Thursday regarding its review Robinhood communications team Twitter feedand said, “We are doubling down on creating a multi-generational business where clients can build wealth for their generations.”

“Of course we also think that it is an attractive investment. We have the best customer base, launch great new products and we have the team to deliver. Our journey has only just begun,” added Robinhood.

Bankman-Fried’s investment could help Robinhood get back on track. Robinhood, along with crypto brokerage rival Coinbase, has struggled this year due to volatility in financial markets.

Coinbase shares, which plummeted earlier this week after a lousy earnings report and weak outlook, rallied alongside Robinhood on Friday. Coinbase stock is up about 25%. But its shares are still down 30% this week and more than 70% this year.

Leave a Reply

Your email address will not be published.