FTX CEO Sam Bankman-Fried Buys 7.6% Stake in Robinhood

Sam Bankman-Fried, the billionaire, Founder and CEO of crypto exchange FTX, has taken a 7.6 percent stake in the American online broker, Robinhood, a regulatory filing on Thursday unveiled.

He purchased Robinhood shares worth a total of $648 million at an average price of $11.52. According to the discloser, he started the purchase in mid-March and continued through until last Wednesday.

Additionally, he pointed out that his position as the commission-free broker might change but did not detail if he is open to buying more shares.

Falling Robinhood Shares

Bankman-Fried started to hoard Robinhood shares when it lost a significant portion of its value. The online stock trading platform went public last year in July with a lot of bells and whistles but soon faced investors’ disinterest as the retail trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term frenzy started to fade.

The latest disclosure by the CEO of FTX has given another lifeline to Robinhood shares as stock prices jumped by around 25 percent in after-hours trading.

Despite his significant stake in Robinhood, Bankman-Fried confirmed that he has no intention of taking over the control of the online brokerage. The founders of Robinhood currently have 64 percent of the outstanding voting shares.

However, Bankman-Fried might consider pushing for changes in the online trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term platform, which he described as “strategic alternatives or operational or management initiatives.”

Interestingly, FTX and Robinhood are now coinciding with each other's operational areas. Robinhood, which disrupted the retail trading industry with the commission-free model, is providing crypto trading and expanding its offerings within the asset class. The broker even purchased a crypto company in the United Kingdom recently to accelerate its push into the country.

Moreover, the US arm of FTX is going to launch a stock trading platform and has already opened a waitlist in February.

Robinhood recently decided to lay off 9 percent of its staff in a move that its CEO, Vlad Tenev described as removing “duplicate roles and job functions.”