FTX, a cryptocurrency exchange platform, is looking to buy Robinhood, a stock trading service.
While cryptocurrencies are generally facing a massive downtrend in prices, one of the largest crypto exchanges is reportedly considering acquiring Robinhood.
(Photo : JUSTIN TALLIS/AFP via Getty Images)
An illustration picture taken in London on May 8, 2022, shows gold plated souvenir cryptocurrency Tether (USDT), Bitcoin and Etherium coins arranged beside a screen displaying a trading chart.
FTX to Buy Robinhood?
As per a news story by Bloomberg, the chief executive officer (CEO) of FTX, Sam Bankman-Fried is reportedly looking into buying Robinhood, sources close to the matter disclosed.
It is worth noting that the FTX CEO, Bankman-Fried is remarkably one of the wealthiest folks in the crypto industry, flaunting a whopping net worth of roughly $10 billion, according to the Billionaires Index of Bloomberg.
One of the sources of the business news outlet says that FTX is internally studying how to go on with acquiring the massive stock trading app platform.
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This photo illustration shows a person looking at a smartphone with the projected Robinhood (HOOD) price shares in Los Angeles, July 27, 2021.
This photo illustration shows a person looking at a smartphone with the projected Robinhood (HOOD) price shares in Los Angeles, July 27, 2021.
However, it appears that the plans to buy Robinhood are still in very early stages, as the top brass of FTX has yet to come up with a final decision.
So, it is still unclear by now if the crypto exchange will be moving forward with an actual offer to Robinhood.
Essentially, what the unnamed source is saying is that FTX has not made a formal offer to buy Robinhood. Instead, all of these are still merely being looked into.
FTX CEO Speaks about Robinhood Acquisition
The FTX boss himself, no less than Bankman-Fried, issued a statement to Bloomberg, addressing the report that the crypto exchange is looking to buy Robinhood.
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This illustration photo shows a smart phone screen displaying the logo of FTX, the crypto exchange platform, with a screen showing the FTX website in the background in Arlington, Virginia on February 10, 2022.
This illustration photo shows a smart phone screen displaying the logo of FTX, the crypto exchange platform, with a screen showing the FTX website in the background in Arlington, Virginia on February 10, 2022.
Bankman-Fried wrote in an email that they "are excited about Robinhood's business prospects and potential ways we could partner with them."
But despite that, the FTX chief executive clarified that "there are no active M&A (mergers and acquisitions) conversations with Robinhood."
According to a recent report by The Verge, the response of the FTX CEO means to say that the crypto exchange is not in the process of any Robinhood acquisition.
FTX CEO and Robinhood
The Verge also highlights in its story that the big boss of FTX has previously revealed that he has a stake in the stock trading app, Robinhood, which amounts to roughly 7.6 percent.
(Photo : Craig Barritt/Getty Images for CARE For Special Children )
NEW YORK, NEW YORK - JUNE 23: Sam Bankman-Fried speaks onstage during the first annual Moonlight Gala benefitting CARE - Children With Special Needs - hosted by Michael Cayre, Roy Nachum and MegaMoon Museum at Casa Cipriani on June 23, 2022 in New York City.
NEW YORK, NEW YORK - JUNE 23: Sam Bankman-Fried speaks onstage during the first annual Moonlight Gala benefitting CARE - Children With Special Needs - hosted by Michael Cayre, Roy Nachum and MegaMoon Museum at Casa Cipriani on June 23, 2022 in New York City.
Back in May, the stake of Bankman-Fried was worth $648 million, the filing from the Securities and Exchange Commission reveals.
Related Article: Crypto Exchange FTX to Expand in Asia, Acquires Japanese Rival Liquid
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Written by Teejay Boris
