The cryptocurrency exchange, FTX, denied rumors that its CEO Sam Bankman-Fried (SBF) was looking to acquire Robinhood, a traditional finance brokerage.
According to a firm representative, the retail-focused brokerage that mostly trades shares and options in addition to a somewhat smaller cryptocurrency operation, “there are no active M&A conversations”.
Sam Bankman-Fried, who has been on an acquisition binge throughout the chaotic time in crypto, was reportedly involved in the discussions to acquire the commission-free investing platform, according to Bloomberg.
“We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built. That being said, there are no active M&A conversations with Robinhood,” the spokesperson mentioned in a statement.
After Bloomberg broke the news of FTX’s acquisition, the price of Robinhood stock increased by about 15%, but it has subsequently dropped to below $9 in after-hours trade.
According to a May SEC filing, FTX CEO Sam Bankman-Fried secured 7.6% stake in Robinhood, which caused the trading app’s shares to increase by about 30%.
As per Bloomberg, neither FTX nor Robinhood had received a formal acquisition bid, and any firm can decide not to move forward with the transaction.
