Robinhood Stocks Rally as FTX Creator Obtains 7.6 Percent Stake in Crypto-Stock Exchange
The Robinhood crypto-stock exchange is bathing in market happiness after Sam Bankman-Fried, the CEO of crypto exchange FTX, acquired 7.6 percent stake in the company in an offer that apparently costed the billionaire $648 million (approximately Rs. 5,013 crore). The expense was taken over by Emergent Fidelity Technologies, where Bankman-Fried is the sole director and bulk owner. Not long after the deal closed, Robinhood shares soared between 24-30 percent. The development comes days after Robinhood shares had nosedived due to its “corporate conduct”.
Robinhood also confirmed the advancement on Twitter on Friday, May 13, where it called Bankman-Fried’s investment “appealing”.
We’re doubling down on creating a multi-generational company where consumers can build wealth for their generations.
— Robinhood Comms (@RobinhoodComms) Might 12, 2022
Formerly a stock trading platform, Robinhood added crypto trading to its service portfolio in 2018. It captured the attention of the FTX founder mid-March when he began buying Robinhood stocks. The purchase closed today, CoinTelegraph stated in a report.The billionaire
business owner is not seeking to pitch any structural or functional modifications to Robinhood, and has actually backed his choice by calling it a worthwhile investment.Back in April, Robinhood shares had actually plunged after the company decided to let go of 9 percent of its full-time work force.The company, at the time, backed its choice saying that it was closing down several duplicated roles and job functions that were generated in between 2019 and 2021 when its staff member count swelled to 3,800 from 700. Regardless of corporate changes, Robinhood has been speeding up efforts to present brand-new crypto-centric products and services.In January this year, Robinhood launched a beta test variation of its crypto wallet service for 1,000 waitlisted customers.In April last year, Robinhood also bought UK-based crypto company called Ziglu. Just recently, in its 2022 first quarter report, Robinhood exposed that 18 percent of its net profits originated from crypto-related transactions.Published at Fri, 13 Might 2022 10:52:58 +0000