- Since it peaked at $55 soon after the IPO in July, the stock has progressively declined.
- For Bankman-Fried, investing in Robinhood was an “attractive investment.”
FTX CEO Sam Bankman-Fried purchased a significant 7.6 percent investment in stock and cryptocurrency trading platform Robinhood, according to a filing with the Securities and Exchange Commission. Shares of Robinhood soared by more than 30 percent after the deal was announced. The stock was trading at $8.56 per share as of this writing.
FTX CEO Bought the Dip
According to the SEC filing, Bankman-Fried purchased around 56 million shares of Robinhood via a company named Emergent Fidelity Technologies; the investment is reportedly valued at about $600 million. The investment comes at a time when Robinhood’s fortunes and sales have been on the decrease; only hours before news of Bankman-investment Fried’s in the firm, Robinhood shares had reached an all-time low of $7.71. Maybe the FTX CEO bought the dip in the true sense.
Since it peaked at $55 soon after the IPO in July, the stock has progressively declined. When the economy took a turn for the worse, corporation profits were made. For the first quarter of 2022, the firm reported a fall of 18 percent in sales. It cut 9 percent of its personnel three weeks ago, blaming a worldwide slowdown in casual investing activity for the company’s sluggish development.
However, the same quarterly report indicated that Robinhood was enjoying an uptick in one division: crypto trading. It was only in the first quarter of this year that cryptocurrency trading revenues increased by 13 percent. Last month, Robinhood welcomed Solana, Shiba Inu, Polygon, and Compound to its platform, continuing the steady expansion of its crypto services.
For Bankman-Fried, investing in Robinhood was an “attractive investment,” and he has no plans to modify or influence the company’s future, as declared in his SEC filing. “Of course we believe it is an excellent investment too,” tweeted Robinhood’s public relations team in response to the comment.