Cryptocurrency derivatives change FTX is reportedly exploring a takeover of Robinhood Markets, the favored buying and selling app that launched hundreds of thousands of merchants to Bitcoin (BTC), Ether (ETH) and Dogecoin (DOGE).
Citing folks acquainted with the matter, Bloomberg reported Monday that FTX is holding inside deliberations about whether or not to amass Robinhood. Although no choice has been made to pursue a takeover, FTX is alleged to be taking the matter severely. Bloomberg’s contact clarified that FTX has but to strategy Robinhood with a buyout proposal and that it might nonetheless resolve in opposition to pursuing a deal.
In a follow-up assertion to Bloomberg, FTX CEO Sam Bankman-Fried clarified that his agency is worked up about doubtlessly partnering with Robinhood however that there have been no lively merger conversations, which was according to earlier reporting:
“We are excited about Robinhood’s business prospects and potential ways we could partner with them […] That being said, there are no active M&A conversations with Robinhood.”
This is not the primary time FTX or Bankman-Fried have been tied to Robinhood. In May, it was disclosed that the FTX CEO had bought a 7.6% stake within the low cost brokerage valued at $650 million. At the time, Bankman-Fried mentioned the acquisition mirrored his perception that Robinhood is an “engaging funding” however that he had no intention of adjusting or influencing management of the agency.
Of course we predict it’s a lovely funding too. We have the very best buyer base, are introducing nice new merchandise, and we’ve the crew to ship.
— Robinhood Comms (@RobinhoodComms) May 12, 2022
Despite the onset of crypto winter, FTX has proven no indicators of slowing its growth. The change lately tabled a $250 million bailout supply to Bitcoin lender BlockFi; earlier this month, FTX entered into an settlement to buy Canadian cryptocurrency platform Bitvo for an undisclosed quantity.
Amid mass layoffs within the crypto change enterprise, FTX confirmed earlier this month that it could not be lowering its employees. Bankman-Fried tweeted on June 6 that his change plans to “continue to grow” for the foreseeable future.
Related: Goldman Sachs downgrades Coinbase inventory to ‘sell’
As for Robinhood, the low cost brokerage platform has misplaced roughly three-quarters of its worth since debuting on the Nasdaq inventory change in July 2021. The firm’s share worth was up 13% on Monday however continues to be down over 75% from its preliminary public providing.
In the primary quarter of 2022, Robinhood’s web income declined 43% year-over-year to $299 million. Crypto-related income declined by 39% to $54 million over the identical interval.
This article has been up to date to incorporate newest feedback from Sam Bankman-Fried.