A leading crypto exchange FTX’s CEO Sam Bankman-Fried has bought a substantial 7.6% stake in Robinhood, a stock and crypto trading app, as per the filing with the U.S. Securities and Exchange Commission.
According to the SEC filing, Bankman-Fried bought just over 56 million shares of Robinhood via a firm called Emergent Fidelity technologies. He paid around $648 million for the stake which makes him Robinhood’s third-largest shareholder.
The investments changed the game for Robinhood whose shares hit an all-time low of $7.71 just hours before the news of Bankman-Fried’s purchase broke out. Consequently, the purchase sent Robinhood shares soaring by over 30% in after-hours trading. As of writing, the stock had come back down a bit, to $10.32.
The SEC filing also mentioned that Bankman-Fried acquired the shares in the belief that they “represent an attractive investment.” The filing also said, “The Reporting Persons intend to hold the shares as an investment, and do not currently have any plan to take any action toward influencing and changing the control of the Issuer.”
Though it was stated that Bankman-Fried may from time to time engage in discussions. Robinhood’s communication team also shared a tweet saying – “Of course we think it is an attractive investment too.” in a response to the news of the investment.
Well, Sam Bankman-Fried has always been up for something whether it is investing in a firm Robinhood or becoming a crypto Robinhood himself. Last month, the young billionaire pledged to donate all of his wealth, proving himself to be a crypto enthusiast Robinhood.
While he constantly works towards making FTX the biggest source of financial transactions in the world, he also wants to be involved with charitable organizations that promote the idea of using scientific reasoning to figure out how to do the most good for the greatest number of people.