The CEO of cryptocurrency exchange FTX has bought a 7.6% stake in Robinhood Markets, according to a filing with US regulators on Thursday.
Samuel Bankman-Fried said in the filing that he bought the shares believing it to be an attractive investment and that he currently had no plans to alter or influence Robinhood’s control.
Robinhood has become famous for its easy-to-use trading app, which has brought a new generation of investors to the stock market, perhaps most famous with the meme frenzy that brought GameStop up early last year. . But crypto has become an important part of his business.
About a quarter of the revenue Robinhood made in the first three months of the year from customer transactions came from cryptocurrencies. Robinhood has beefed up its crypto business, rolling out crypto wallets for its customers and adding new coins to trade on its platform.
Bankman-Fried built its stake in Robinhood through a company called Emergent Fidelity Technologies, buying stock regularly from March 14 through Wednesday. The stock price has fallen during this period, as it has generally since briefly touched $85 shortly after its Nasdaq debut in the summer of 2021.
Robinhood’s stock fell as its growth slowed sharply. It reported a bigger loss for the first quarter of this year than analysts had expected. The company said volatility in the stock and crypto markets is driving casual investors away, or at least making them more cautious and less likely to make large trades.
Robinhood’s stock jumped nearly 27% in after-hours trading on Thursday following the disclosure. It rose 5% earlier in the regular trading session to close at $8.56.
Robinhood’s crypto trading surges, as overall growth slows
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FTX Crypto Exchange CEO Buys Big Stake In Robinhood
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