Crypto change FTX denied media hypothesis that it’s seeking to purchase Robinhood, Reuters reported.
The assertion was made after a June 27 Bloomberg Information report claimed the U.S.-based firm was in discussions with Robinhood however had but to make a suggestion.
FTX CEO Bankman-Good friend, in a statement issued to TechCrunch, mentioned the corporate isn’t within the technique of buying Robinhood. He acknowledged:
“We’re enthusiastic about Robinhood’s enterprise prospects and potential methods we might accomplice with them. That being mentioned, there are not any lively M&A conversations with Robinhood.”
Contemplating that the Bankman-Good friend has a 7.6% stake in Robinhood, it’s no shock that the speculations have been made.
Robinhood has struggled to keep up a good kind because it peaked in reputation in 2021 courtesy of the meme inventory wave.
The buying and selling agency has nonetheless seen its income fall 48% yr over yr, from $522 million to $299 million. Likewise, its lively customers dropped from 17.7 million in 2021 to fifteen.9 million in March 2022.
Nevertheless, Robinhood’s shares skilled a 14% surge because the report gained floor earlier than falling practically 3% in after-hours buying and selling. As of the time of press, the shares are at present buying and selling at $9.
FTX bailing out distressed crypto companies
The intense crypto market downturn has left a number of crypto establishments on the point of collapse. A number of firms have introduced layoffs and downsized operations amidst rising fears of insolvency or liquidation.
Nevertheless, FTX has been offering pivotal bailouts to struggling blockchain firms.
On June 21, it was reported that FT had entered talks with BlockFi for the extension of a $250 million credit score facility. The distressed crypto lending platform had earlier downsized its workforce to outlive the crypto winter.
Likewise, FTX’s CEO Bankman-Good friend, by means of one other firm of his Alameda ventures, additionally lent $200 million and 15k Bitcoin to crypto brokerage voyager Digital.