FTX CEO Sam Bankman-Fried (SBF) refuted rumors that the crypto speech was readying to get the trading platform, Robinhood. This is aft Bloomberg News reported yesterday that FTX was successful talks to bargain Robinhood.
However, the FTX CEO contiguous issued an emailed connection saying:
“We are excited astir Robinhood’s concern prospects and imaginable ways we could spouse with them, and I person ever been impressed by the concern that Vlad and his squad person built. That being said determination are nary progressive M&A conversations with Robinhood.”
It is imaginable that the rumors suggesting that discussions were underway connected however FTX would bargain the brokerage app were based connected an earlier remark by Fried that Robinhood was “an charismatic investment.”
Robinhood dual-class shareholder structure
Since Robinhood has a dual-class shareholder operation that gives its founders much power, it volition beryllium hard for FTX to marque a buy-out without the support of the founders.
Robinhood CEO, Vlad Tenev and CCO Baiju Bhatt ain astir 8% of the trading level and person 64% voting powerfulness of the company.
According to a filing with the US Securities and Exchange Commission (SEC) past month, Sam Bankman-Fried has purchased a 7.6% involvement successful Robinhood and regards Robinhood arsenic an “attractive investment.”
However, Fried said that helium has nary intentions to power oregon alteration Robinhood.
Robinhood gross growth
Even though Robinhood offers constricted assets connected its trading platform, its gross maturation has been greatly influenced by the incomes from the crypto-related trading platform.
After joining the manufacture 4 years ago, Robinhood is presently trying to grow its crypto offering, wherever it launched a wallet functionality connected its level this year.