Sam Bankman-Fried (SBF)’s crypto exchange FTX is examining pathways by which it can acquire Robinhood, according to people with knowledge of the matter.
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- As reported by Bloomberg on Monday, FTX is having internal deliberations on how it can buy out the brokerage app.
- The source of the information chose to remain anonymous, as this matter is not public yet. FTX is also yet to formally approach Robinhood with an offer.
- The exchange may still opt out of the deal, as no final decisions have been made.
- Robinhood is an app that grants users commission-free stock and cryptocurrency trades. It has since announced its upcoming NFT and Defi compatible non-custodial wallet, following plans for a lightning network wallet revealed in April.
- Robinhood grew massively in popularity during the 2021 Dogecoin boom, and currently holds around 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. Multiple other crypto companies have since been forced into the same position, while others face possible insolvency.
- Meanwhile, SBF has positioned himself as a market savior at this time, offering to bailout firms like BlockFi and Voyager at FTX and Alameda Research respectively.
- SBF already acquired a 7.6% stake in Robinhood in May, after which HOOD’s price soared.
- The billionaire said at the time that Robinhood was an “attractive investment,” but that he had no intention of “changing or influencing” the company.
