FTX, a cryptocurrency exchange, is contemplating purchasing Robinhood


According to Bloomberg, which cited informed sources, the owner of one of the biggest cryptocurrency exchanges in the world, FTX, is thinking about purchasing the American Robinhood Markets (NASDAQ:HOOD) Inc.
According to the sources, FTX management has been debating internally how the company may purchase Robinhood without submitting a formal purchase offer.

FTX CEO Sam Bankman-Fried also stated in a letter to MarketWatch that no M&A discussions have taken place between his company and Robinhood.

“We are enthusiastic about Robinhood’s growth prospects and the opportunities we have to collaborate with the company… However, there aren’t any ongoing M&A discussions with Robinhood, according to Bankman-Fried.

One of Robinhood’s biggest shareholders is Bankman-Fried. A 7.6 percent share in the business, which he paid $648 million for in May, is his. At the time, the billionaire made this disclosure in regulatory records using Form 13D, which investors typically use when they intend to play a significant role in the firm, such as by expecting to be elected to the board of directors. However, Bankman-Fried affirmed that he had no such plans.

On Monday’s main New York trading floor, Robinhood shares increased 14% in response to news that FTX was showing interest in the business. The shares dropped 4% in subsequent trading, though, after the Bankman-Fried letter was published.