https://www.reuters.com/technology/crypto-exchange-ftx-ceo-reveals-stake-trading-app-robinhood-2022-05-12/

 
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May 12, 20229:40 PM UTCLast Updated ago

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    Technology

Crypto exchange FTX CEO reveals stake in trading app Robinhood

By Greg Roumeliotis
and Hannah Lang

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2 minute read
The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall
Street after the company's IPO in New York City

The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall
Street after the company's IPO in New York City, U.S., July 29, 2021.
REUTERS/Andrew Kelly

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May 12 (Reuters) - Samuel Bankman-Fried, the chief executive and
founder of cryptocurrency exchange FTX, revealed a 7.6% stake in
Robinhood Markets Inc (HOOD.O) on Thursday, capitalizing on the
weakness of the shares of the trading app to build a position.

Bankman-Fried said in a regulatory filing he did not have any
intention of taking control of Robinhood. The company's dual-class
shares currently give Robinhood's founders control of 64% of the
voting shares outstanding.

A person familiar with the matter said that Bankman-Fried had not
informed Robinhood of any plans to merge it with his FTX platform.

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Bankman-Fried said in the filing that it was possible that his
position may evolve and he could end up pushing for changes. He
disclosed he started building his stake in Robinhood in the middle of
March. According to a filing with the Securities and Exchange
commission, he now owns more than 56 million shares, which he
purchased for more than $648 million.

Shares of Robinhood were up more than 27% in after-hours trading
following the disclosure, as investors cheered Bankman-Fried's show
of confidence in the beaten-up stock. The company has struggled to
meet Wall Street expectations since its IPO last year.

Robinhood's communication team tweeted that they agree with
Bankman-Fried that the company is "an attractive investment."

"We have the best customer base, are introducing great new products,
and we have the team to deliver. Our journey is just beginning," the
team said.

FTX, which Bankman-Fried co-founded in 2019, was valued at $32
billion in a February funding round, and Bankman-Fried himself is
worth $21 billion, according to Forbes.

Like many tech start-ups, Robinhood has yet to turn a profit, but
even still, its earnings have disappointed investors. The company
reported a 43% decline in first-quarter revenue along with a decline
in monthly active users in April. read more

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Reporting by Greg Roumeliotis in New York and Hannah Lang in
Washington; Editing by Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

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