Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, has bought a 7.6% stake in Robinhood for US$648 million, according to a filing with the U.S. Securities and Exchange Commission.
- Bankman-Fried bought the stake through a firm called Emergent Fidelity Technologies, the filing says, where Bankman-Fried is the sole director and majority owner.
- Emergent used working capital for the purchase and Bankman-Fried acquired the shares because they “represent an attractive investment,” the filing said.
- Shares of Nasdaq-listed Robinhood jumped about 30% at one point after the announcement and closed at US$8.56 on Thursday, up 5%.
- The equity and crypto trading platform’s shares have lost half their value so far this year, reflecting an across-the-board slump in stock markets and cryptocurrencies.
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