Key takeaways:
- The CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, has acquired more than 56 million shares of the popular trading platform Robinhood
- FTX CEO now controls a 7.6% stake in Robinhood, worth over $600 million at current market rates
- Both Robinhood stock and the native token of the FTX crypto exchange rallied on the news
Robinhood stock rallied by 25% in response to Sam Bankman-Fried’s major acquisition
The founder and CEO of FTX cryptocurrency exchange, Sam Bankman-Fried, has bought a 7.6% stake in the popular trading platform Robinhood. According to the Securities and Exchange Commission document, the crypto billionaire acquired over 56 million shares of Robinhood on May 2.
The news of the major acquisition saw Robinhood stock (HOOD) rally by 25% on Friday. At current market rates, Sam Bankman Fried’s investment is worth more than $604 million.
While primarily focused on traditional financial instruments, Robinhood has expanded its offering to include digital currencies over recent years. In April, the company added support for four popular cryptocurrencies, including Shiba Inu, Solana, Polygon, and Compound. At the time, Robinhood CBO Steve Quirk said:
“We’re excited to add more choices for our customers as we work to make Robinhood the best place to invest in crypto.”
Bankman-Fried’s FTX exchange saw immense growth in the past year and hit a whopping $32 billion valuation on the heels of a $400 million Series C funding round. The crypto exchange has also launched a number of regional branches in recent months, including FTX Europe and a local branch in Australia. Moreover, the exchanges launched FTX Access, a service aimed at institutional investors looking to gain exposure to crypto.
The native token of the FTX exchange, the FTX Token (FTT), saw a notable positive price change following the news. At press time, FTT is trading at $31.8, up 6.1% for the day.
