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FTX Founder Sam Bankman Fried buys 7.6% stakes in Robinhood

FTX Sam Bankman Fried Robinhood

FTX Founder, Sam Bankman-Fried has bought 7.6% stakes in RobinHood Market Inc. according to a regulatory filing. Fried paid $648 million for the Robinhood stakes. Through the latest purchase, Sam Bankman has become the third-largest shareholder in the online brokerage company.

As soon as the market realized the new investment by FTX Trading, the Robinhood’s stock (HOOD) price soared over 30% on the exchange. The purchase was planned in mid-march and was finalized on Wednesday. Sam Bankman also disclosed a 13D form, which investors use to take an active role in the company stock holdings. However, Fried has cleared in the media that he has no intentions of seeking a board seat or going for a bigger scale in the company as of now.

Source: Twitter

As of now, the Founder of Robinhood possess more than 60% voting control and is focused to keep the company independent as they build its future. Last year in July, Robinhood went for its IPO (Initial Public Offering) where the stock price was $38. However, the current trading price is $8.56 as we write this story. Moreover, a straight 75% decline in the prices is a significant subject of consideration.

Source: Nasdaq

The sale was persuaded through an Antiguan organization called Emergent Fidelity Technologies Ltd. Bankman bought 56 million shares at $648 million, whereas the price dropped to $482 million at the time of market closing.

Bankman may consider or review various alternatives to enhance the stakeholder value. He may include strategic options, and operational and management initiatives, according to the documents provided. Also, Fried can acquire additional shares of Robinhood to increase his stakeholder value among the board members.

Also read: NEAR Protocol Application โ€˜Sweatcoinโ€™ gets bigger with 4M new wallets

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