Shares of American company Robinhood, which provides trading on zero-commission, jumped about 14 percent on Monday. The surge came after a Bloomberg report said that FTX, one of the world’s largest crypto-exchanges, is considering buying Robinhood.
Bloomberg reported that FTX is considering its own level of acquisition of Robinhood. However, so far no offer or offer has been made to Robinhood from his side. However, later FTX CEO Sam Bankman-Fried dismissed the report.
“We’re excited about Robinhood’s business prospects and the potential ways we can partner with them. I’ve always been impressed by the way Vlad and his team have built Robinhood’s business,” he said. He added,”However, at the same time, I would also like to say that there are no talks about merger or acquisition with Robinhood.” Robinhood declined to comment on the news.
Let us tell you that last month Bankman-Fried bought a 7.6% stake in Robinhood for $ 648 million. The filing said that Bankman-Fried purchased the shares on the belief that they “lead to an attractive investment.”
Meanwhile, shares of Robinhood have fallen about 48 percent earlier this year. The decline in the number of users and reduction in revenue is being said to be the main reason behind this decline.
Robinhood’s revenue was down 43 per cent year-on-year at $299 million in the March quarter. At the same time, the number of its monthly users also came down to 159 crores, from 1.77 crores in the same quarter a year ago