Robinhood: No Takeover by Crypto Billionaire

Robinhood: No Takeover by Crypto Billionaire

Speculations that cryptocurrency exchange FTX will take over Robinhood proved unfounded on Tuesday. FTX founder and crypto billionaire Sam Bankman-Fried in a statement denied possible takeover plans. The stock of the Neo-broker is unable to continue its recent recovery.

bloomberg It reported on Monday, citing people familiar with the matter, that FTX was exploring the possibility of acquiring Robinhood. FTX founder Bankman-Fried had already acquired 7.6 percent of the neo-broker in May, but had already brushed off the strategic ideas behind it at the time.

In an emailed statement Tuesday, Bankman-Fried said: “We are excited about Robinhood’s business prospects and the potential opportunities to partner with them. […]Also, he clarifies that “there are no active M&A discussions with Robinhood.”

The neo-broker’s shares were up 14 per cent yesterday after rumors of a takeover. After the interim rise in prices on Tuesday, it is currently close to minus one percent. The recovery that started in the middle of the month has slowed down.

For FTX, an acquisition could be particularly lucrative given Robinhood’s options trading business. However, for the time being, the takeover has stalled and given the poor picture of the charts, DER AKTIONÄR continues to advise to stay away from Robinhood.

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