According to people with knowledge of the matter, Sam Bankman-Fried’s (SBF) crypto exchange FTX is investigating the ways it could acquire Robinhood.
- As Bloomberg reported on Monday, FTX is holding internal discussions on how it can buy the brokerage app.
- The source of the information chose to remain anonymous, as the matter has not yet become public. FTX has yet to formally contact Robinhood with a proposal.
- The exchange may still walk out of the deal, as no final decision has been taken.
- Robinhood is an app that grants users commission-free stock and cryptocurrency trades. Following the plans for the Lightning Network wallet revealed in April, it has announced its upcoming NFT and DeFi compatible non-custodial wallet.
- Robinhood grew massively in popularity during the Dogecoin boom of 2021, and currently accounts for about one-third of all circulating DOGE.
- However, the company was forced to lay off 9% of its full-time employees in April due to overhiring during the previous year. Several other crypto companies have since been forced into the same situation, while others are facing potential bankruptcy.
- Meanwhile, SBF has positioned itself as a market savior at the moment, edging out bailout firms like BlockFi and Voyager in FTX and Alameda Research, respectively.
- SBF had already acquired a 7.6% stake in Robinhood in May, after which the price of HOOD went up.
- The billionaire said at the time that Robinhood was an “attractive investment”, but he had no intention of “changing or affecting” the company.
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