Robinhood Shares Increase By 28% After FTX CEO Purchases 56 Million Shares
Amidst the dip, crypto-millionaire, Sam Bankman-Fried has purchased a 7.6% stake (56 million shares valued at $482 million) in Robinhood.
The purchase was made via a 13D form. This is a form that investors use when they plan to take an active role; either by seeking board seats or agitating for a sale.
The FTX CEO, Friedman said he has no plans for that but hasn’t ruled them out. The document states that he may review “options for enhancing stockholder value through, among other things, various strategic alternatives or operational or management initiatives,”. He could also acquire additional shares.
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The document goes on to say Bankman-Fried acquired the shares in the belief that they “represent an attractive investment.” In response to inquiries about the stake, the Robinhood team tweeted:
“We’re doubling down on creating a multi-generational company where customers can build wealth for their generations. Of course, we think it is an attractive investment too. We have the best customer base, are introducing great new products, and have the team to deliver. Our journey is just beginning.”robinhood
Emergent Fidelity Technologies LTD executed the purchase. It’s an Antiguan firm owned by Sam Bankman-Friedman himself.
Shares of Robinhood have reportedly increased by 28% since the stake.
Robinhood is an online discount brokerage that offers a commission-free investing and trading platform. It started by allowing retail investors to invest in stocks at zero commission but integrated crypto trading into its platform in 2018.
The company has an estimated 31 million users and it recently announced that it had 1.6 million people on a waitlist for a crypto wallet feature it’s building for its platform.
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