Cash Live
    Trending
    • FCC authorizes SpaceX to provide mobile Starlink internet service to boats, planes and trucks
    • RH shares slide after company lowers its outlook for the year
    • FTX closes in on a deal to buy embattled crypto lender BlockFi for $25 million in a fire sale, source says
    • Winning ticket for Powerball’s $366.7 million jackpot sold in Vermont. Here’s the tax bite for the winner
    • Investors see little to be gained in stocks the rest of the year, favor dividend payers now, CNBC survey shows
    • This common money move costs retirement savers $45.5 billion in investment fees, earnings over 25 years
    • Overturning Roe v. Wade could have long-term financial impacts on people who are denied abortions, research shows
    • Spirit delays shareholder vote on merger hours before meeting to continue deal talks with Frontier, JetBlue
    • Personal Finance
    • Investing
      • Investing
      • Advisors
      • Investor Tips
    • Earnings
    • Business
      • Business
      • Small Business
    • Finance
      • Finance
      • Wealth
    Cash Live
    Home»Investing»Robinhood shares jump 25% after crypto CEO Sam Bankman-Fried acquires stake
    Investing

    Robinhood shares jump 25% after crypto CEO Sam Bankman-Fried acquires stake

    May 18, 2022No Comments2 Mins Read
    106918987 16275791572021 07 29t162622z 1786553888 rc2cuo9whxgh rtrmadp 0 robinhood ipo
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Vlad Tenev, CEO and co-founder Robinhood Markets, Inc., is displayed on a screen during his company’s IPO at the Nasdaq Market site in Times Square in New York City, U.S., July 29, 2021.
    Brendan McDermid | Reuters

    Robinhood shares jumped 26% on Friday, a day after the CEO of a major crypto exchange took a stake in the retail investing app.

    An entity called Emergent Fidelity Technologies took a 7.6% stake in Robinhood worth $648 million earlier this month, according to a document filed with the Securities and Exchange Commission. The document also showed Sam Bankman-Fried, who leads the Bahamas-based crypto company FTX, is the sole director and majority owner of Emergent. The stake makes Emergent the third-largest Robinhood shareholder, FactSet data shows.

    Shares of Robinhood closed at $8.56 on Thursday, the day the document was filed. That was about 77% below the company’s July IPO price.

    Bankman-Fried acquired the shares because they “represent an attractive investment,” according to the filing, which also says he “intends to hold the Shares as an investment” and doesn’t have “any intention of taking any action toward changing or influencing the control of the Issuer.”

    He may “from time to time engage in discussions” with management, however.

    “Of course we think it is an attractive investment too,” Robinhood’s communications team said in a tweet Thursday evening in response to the news of the investment.

    Bankman-Fried can also review “options for enhancing stockholder value through, among other things, various strategic alternatives or operational or management initiatives,” according to the document. It also said he could acquire additional shares.

    FTX is one of the biggest crypto exchanges in the world. It offers derivatives products for more sophisticated traders, as well as spot trading, and has become a rival to big names such as Coinbase and Binance. It offers services in the U.S. through a separate entity, FTX U.S.

    Though Robinhood got its start in stock trading, it saw huge success when it rolled out its crypto trading platform in 2018. Crypto trading has since become important for the company’s bottom line. In the fall, Robinhood revealed its testing a crypto wallet and said the waitlist for it had topped 1 million customers.

    This article was originally published by Cnbc.com. Read the original article here.
    fqw82np

      Related Posts

      Investors see little to be gained in stocks the rest of the year, favor dividend payers now, CNBC survey shows

      June 30, 2022

      Top Wall Street analysts stand by these stocks as the first half of 2022 wraps up

      June 26, 2022

      Coinbase shares fall after rival Binance.US drops spot bitcoin trading fees

      June 22, 2022

      Top Wall Street analysts say these are the best stocks to beat the volatile market

      June 19, 2022
      Add A Comment

      Leave A Reply Cancel Reply

      Signup for our Newsletter
      Advert
      “Managed
      Categories
      • Advisors
      • Business
      • Earnings
      • Finance
      • Investing
      • Investor Tips
      • Personal finance
      • Small Business
      • Wealth
      Signup for our Newsletter
      Advert
      “Cryptocurrency
      Uselful links
      • Contact
      • About us
      • DMCA / Copyrights Disclaimer
      • Privacy Policy
      • Terms and Conditions
      • Cookie Policy (US)
      • Cookie Policy (EU)
      ARCHIVES
      © 2022 Designed and Powered by JL Digital webbyrå.

      Type above and press Enter to search. Press Esc to cancel.

      Manage Cookie Consent
      To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
      Functional Always active
      The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
      Preferences
      The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
      Statistics
      The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
      Marketing
      The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
      Manage options Manage services Manage vendors Read more about these purposes
      View preferences
      {title} {title} {title}