Robinhood Rise After 30-Year-Old Crypto Billionaire Takes Stake

New York
CNN Business
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It has been A brutal year for Robinhood. Twin plunge of stock and Bitcoin Online brokerage sales crushed. The company also reported a loss and a decrease in the number of users. The stock is down 40% this year and Robinhood recently announced a massive round of layoffs.

But there could be hope on the horizon.

shares Robinhood It rose more than 25% on Friday after an investment firm run by 30-year-old crypto billionaire Sam Bankman-Fried revealed in Securities and Exchange Commission filing They bought a 7.6% stake in the company.

Bankman-Fried, who runs start-up FTX, a Bahamas-based cryptocurrency exchange, said in the filing that he bought Robinhood’s shares because he believes they “represent an attractive investment.” He added that his stake is meant to be a passive investment and that he “currently has no intention of taking any action towards changing or affecting the control” of Robinhood.

(Of course, Elon Musk’s initial investment in Twitter

(TWTR) It looked negative before Tesla

(TSLA) And SpaceX The CEO changed his mind and then I decided to buy all Twitter

(TWTR)… Deal Now hanging.)

FTX has taken over the cryptocurrency world, Attracting more than a million users Since its launch in 2019, having its founder as a strategic investor in Robinhood can help give the brokerage more credibility, not to mention a backer who has a lot of money at his disposal.

The privately owned FTX recently raised new funding The company is valued at $32 billion. According to data tracked by Forbes, Bankman-Fried, who is also the founder of cryptocurrency exchange Alameda Research, is valued at $21.2 billion.

FTX had no further comment about Robinhood’s stake in Bankman-Fried. Robinhood released a verified statement Thursday Robinhood Communications Team Twitter feed“We are redoubling our efforts in creating a multi-generational company where customers can create wealth for their generations,” he said.

Of course, we think it’s an attractive investment too. We have the best customer base, introduce great new products, and have a team to deliver. “Our journey is just beginning,” Robinhood added.

An investment from Bankman-Fried can help Robinhood get back on track. Robinhood, along with rival cryptocurrency brokerage Coinbase, has struggled this year due to volatility in financial markets.

shares Queen PieceWhich Dropped earlier this week After a poor earnings report and poor outlook, it rose in conjunction with Robinhood on Friday. Coinbase stock is up about 25%. But its shares are still down 30% this week and more than 70% this year.