Shares of Robinhood Markets Inc (NASDAQ: HOOD) jumped 12% this evening on a report that one of the world’s largest crypto exchanges is interested in buying the trading app.
FTX is considering an acquisition
Anonymous sources told Bloomberg on Monday that FTX is considering bringing Robinhood under its umbrella. Internal discussions are ongoing but the financial services company is yet to receive a formal proposal.
The news comes more than a month after FTX CEO – Sam Bankman-Fried spent $648 million to secure a 7.60% stake in Robinhood. At the time, he hadn’t revealed any interest in an all-out acquisition.
The billionaire has been in news recently for bailing out smaller crypto players like BlockFi and Voyager Digital.
Robinhood stock is 50% down year-to-date
Wall Street currently has a “hold” rating on Robinhood Markets Inc. In April, the Nasdaq-listed firm blamed macro headwinds as it reported a 43% year-over-year decline in its Q1 revenue.
Robinhood Markets refused to make an official comment on the Bloomberg report. Last month, the California-based company said it was working on a new non-custodial, web3 wallet that will offer customers a complete control on their crypto.
“HOOD” is currently down more than 75% from the price at which it went public last year. Once a $60 billion business, its market cap has shrunk to under $8.0 billion on Monday.
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