- Sam Bankman-Fried has taken 7.6 percent of stake in Robinhood trading application, as per filing of Securities and Exchange Commission.
- SBF is the CEO of crypto exchange FTX, invested via an organization known as Emergent Fidelity Technologies as per the filing.
- Following this news, Robinhood stocks escalated by 29% in extended trading. The acceleration came after Robinhood shares hit a 1 year low of $7.71.
Sam Bankman-Fried Fuels Robinhood Share Price
CEO of crypto exchange FTX, Sam Bankman-Fried, has acquired 7.6 percent of stakes in Robinhood exchange, as per the Thursday filing with SEC. Stocks of the investing organization elevated 36% at a point during extended trading before getting bumped again. They were last uptrending around 25%.
In routine trading Thursday, the share hit the ATL. Robinhood closed session priced at $8.56, around 77% away from its IPO value previous July. As per the document, Emergent Fidelity Technologies bagged a stake worth $648 million in Robinhood. Sam Bankman-Fried is the prime owner and sole director, it states.
The document further states that Sam Bankman Fried took over the shares in belief that they “exhibit a luring investment.” The Reporting Persons intend to hold stocks as investment, and at present, do not intend to take any action towards shifting or impacting the command of issuer, it states. Though the filing also states that he might “from time to time get involved in the debates” with management.
As per a tweet by comms team of Robinhood, they believe it is a luring investment too, while responding to the investment news.
SBF Planning No Further Action
Sam Bankman-Fried is not planning any action but at some point if the scenario changes, he might review “options for intensifying stockholders value through, amongst other stuff, several strategic alternatives or functional or management initiatives,” as per the document. It also states that he might take over additional stocks.
FTX, where Sam Bankman Fried is the Chief Exec Officer, is among the greatest cryptocurrency exchanges on the globe and provides derivatives products for more complex traders and spot trading. It has become a contender to Binance as well as Coinbase, though it does not offer its facilities in United States.
Robinhood got started enabling its retail investors to make investment in shares but witnessed massive success when it unveiled its cryptocurrency trading platform back in 2018.
Source: https://www.thecoinrepublic.com/2022/05/13/sam-bankman-fried-becomes-3rd-biggest-robinhood-stockholder-share-rises-26/