Sam Bankman Fried has purchased a $650 million stake in Robinhood, pushing the brokerage platforms shares 30% into the roof. According to several reports, the purchased stake would see the FTX CEO hold a 7.6% company ownership. The market reacted well to the update, judging by the massive surge experienced by the HOOD stock. Although it posted a 30% gain at the period, it is soon undergone correction to currently reward holders with a 24% gain in the last 24 hours.
Sam Bankman Fried purchases cause HOOD to surge
In the filing report that was obtained from the SEC after the purchase, Sam Bankman Fried bought each share at $11.2, reaching a total cumulative price of $648 million. The report claimed that the purchase has been ongoing since March and was just finalized on Wednesday. According to his filing to the SEC, the FTX CEO claimed that he was not planning to influence how Robinhood carries out its activities.
According to Sam Bankman Fried, he is just doing business and focusing on the investment part of the business. Giving their reaction to the move, Robinhood noted on the microblogging platform Twitter that they keyed into the statement of the FTX CEO, stating that they think it is an excellent investment on his part. The deal was facilitated and completed by a Sam Bankman Fried-owned entity, Emergent Fidelity Technologies.
Robinhood intensify crypto integration
This recent update is coming at one of the best times, providing HOOD holders with some succor after a recent stock decline. Notably, the price of the Robinhood stock took a beating on March 12 as it traded as low as $7 in the market. The decline came some days after the brokerage firm told the public that it encountered a massive loss of 39% in its crypto revenue. Robinhood has also been trying to push into the crypto sector following the plummet of its stock over the last few months.
Robinhood users can now carry out crypto traders on the platform, putting it in conversation with firms like Gemini in the crypto sector. A first-quarter report posted by the company saw a net increase of 18% from crypto transactions while its transaction-based income registered was about $54 million, signaling a 39% cut. The firm has been mulling the idea of providing brokerage services in the crypto sector, going by its acquisition of Ziglu, a company providing crypto services in the United Kingdom. The company has also carried out other activities to boost its presence in the crypto market.
