Crypto Exchange FTX Exploring Robinhood Acquisition: Report

Crypto billionaire Sam Bankman-Fried’s exchange firm FTX is reportedly exploring a possible acquisition of Robinhood.

A development that sent shares of the struggling stock trading platform soaring 15% ahead of the closing bell on Monday.

Cryptocurrency derivatives exchange FTX, the popular trading app that introduced millions of traders to Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE).

iexclusivenews reports that Bloomberg stated on Monday that FTX is having internal discussions about whether to purchase Robinhood, citing people with knowledge of the situation.

Although no choice has been made about a takeover, FTX is thought to be actively considering it. According to Bloomberg’s informant, FTX has not yet approached Robinhood with a buyout bid and may yet decide not to proceed with a purchase.

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FTX has shown no indications of slowing down its growth despite the beginning of the crypto winter.

The exchange, run by billionaire Sam Bankman-Fried, recently presented BlockFi with a $250 million rescue proposal.

This online news outlet understands that FTX and Bitvo, a Canadian cryptocurrency platform, have an agreement to buy each other for an unknown sum.

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FTX declared earlier this month that it will not be cutting its workforce despite widespread layoffs in the cryptocurrency exchange industry.

On June 6, Bankman-Fried tweeted that his exchange intended to “keep developing” going forward. Since making its Nasdaq debut in July 2021, Robinhood, a cheap brokerage platform, has lost around three-quarters of its value.

Since debuting at $38 a share, Robinhood’s stock price has tumbled over the past year. The stock has a market capitalization of $7.6 billion. Source: TradingView.

Robinhood’s net income fell to $299 million in the first quarter of 2022, a 43 percent year-over-year fall. Over the same year, income connected to cryptocurrencies fell by 39% to $54 million.