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Cryptographic Exchange FTX Exploring Robin Hood Acquisition: Report

Cryptocurrency billionaire Sam Bankman-Fried's exchange, FTX, is reportedly exploring the potential acquisition of Robinhood. This is the development that sent the stockof the struggling stock trading platform. It soared 15% before the closing bell on Monday.

FTX executives, a major internationally comparable cryptocurrency exchange for Coinbase and Binance, say they are "in-house discussing" how to buy Robin HoodBloombergAnd cites more sources on this issue.

FTX has not yet officially offered to Robin Hood and has not made a final decision on whether to pursue the acquisition, sources added.

"I'm excited about Robin Hood's business outlook and the potential ways to partner with them," Bankman Fried said in an email to Bloomberg. "That said, there is no lively M&conversation with Robin Hood."

Robin Hood stock tradingwas temporarily suspended around 3 pm. EThas emerged as news about the potential interest of FTX. Trading resumed after about 10 minutes.

Robin Hood declined to comment. FTX did not immediately return a request for comment.

Sam Bankman-Fried
RollCall via CQ-GettyImag, Inc

Robinhood co-founder, CEO Vlad Tenev According to company filings, Chief Creative Officer Baiju Bhatt controls more than 50% of the company's voting rights.

FTX's reported interest is that, upon submission by the SEC, Bankman-Fried-owned company Emergent Fidelity Technologies will take a 7.6% stake in Robinhood for $ 648 million. It became clear a few weeks after it became clear that I had purchased it. With this acquisition, Bankman-Fried ’s Emergent has become Robinhood's third largest shareholder.

SipaUSA via AP

According to the filing, the company is a "attractive investment. Robinhood rolled out crypto wallet capabilities on its platform earlier this year.

Robin Hood's share has fallen by about 50% since January. This is because trading platforms survive the slump in a wide range of markets that are blaming investors, big and small. COVID-19 Pandemic.

In April, Robin Hood reported a loss of $ 392 million in the first quarter. Quarterly revenues were down 43% from a year ago to $ 299 million, and the company acknowledged a decline in its monthly active user base. The company

fired 9% of its employees that month. This is due to the surge in personnel that has led to the duplication of some roles.