Robinhood Stock Falls

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Robinhood Stock Falls
29 Jun 2022
5 min read

News Synopsis

The stock of Robinhood fell on Tuesday after crypto billionaire Sam Bankman-Fried stated that FTX was not in talks to acquire the online brokerage. "There are no active M&A conversations with Robinhood," he said in a statement to Reuters. "We are excited about Robinhood's business prospects and potential collaboration opportunities."

 According to Bloomberg, crypto exchange FTX is deliberating internally on how to acquire Robinhood, but no formal offer has been made, and no official talks have begun. After trading lower in the premarket, Robinhood stock fell 1.04 percent on Tuesday. Following the release of the report on Monday, the company's stock increased by 22%.

Last month, FTX's 30-year-old founder and CEO, Bankman-Fried, disclosed a 7.6 percent personal stake in Robinhood, calling its current valuation "cheap." He purchased approximately 56.3 million shares, which were worth approximately $482 million based on the closing price at the time of Bankman-purchase. Fried's

 A possible merger between the two would boost FTX's stock trading ambitions and provide the company with greater scale, as Robinhood has nearly 23 million accounts.