In a report by Bloomberg on Monday, the CEO of FTX cryptocurrency exchange, Sam Bankman-Fried, is exploring the possibility of acquiring Robinhood Market Inc., according to the people who are familiar with the matter.
According to the report, FTX is currently looking to buy the app-based brokerage and Robinhood has not yet received any formal proposal regarding the acquisition.
Hitherto, no final decision has been made by FTX, meaning that the acquisition intention may be withdrawn at any time.
“We are excited about Robinhood’s business prospects and potential ways we could partner with them,” Bankman-Fried said in an emailed statement. He, however, added that “there are no active M&A conversations with Robinhood.”
Last month, Sam Bankman-Fried disclosed his 7.6% stake in Robinhood, after which he said he had no intention of taking over the retail trading platform. According to the Securities and Exchange Commission, the deal was worth more than $648 million, a deal that was considered an attractive investment for the FTX CEO.
Even though FTX doesn’t provide its services to the US crypto traders/investors, the exchange is one of the largest spot trading and derivative trading cryptocurrency exchanges globally, competing with the likes of Coinbase and Binance.
Robinhood this year has been operating under pressure due to a significant decline in its users compared to 2021. The company last month also announced the launch of a web 3.0 wallet, the wallet which will possess features like zero-network-fee asset trading and swapping, access to DeFi protocols, and an NFT marketplace which if deployed, is likely to pose a significant threat to Coinbase and Metamask.
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