Chief Executive Officer of FTX Sam Bankman-Fried has debunked the rumors that the exchange is in active talks for the purchase of popular zero-commission brokerage platform Robinhood (NASDAQ:HOOD).
FTX Not In Talks to Purchase Robinhood
On Monday, June 27th, reports arose that claimed FTX was making plans to acquire Robinhood. News about the potential deal emerged shortly after FTX injected funds into two struggling crypto firms.
However, FTX boss Sam Bankman-Fried has debunked the claims of such a deal via an e-mailed statement. In the communication, Bankman-Fried wrote: “There are no active M&A conversations with Robinhood.”
FTX to Partner with Robinhood?
Although FTX denied the rumors, Bankman-Fried explained that his firm could potentially look to form a partnership with Robinhood. According to the billionaire CEO, he has always been impressed by what Vlad Tenev and his team have built at Robinhood.
Bankman-Fried wrote, “we are excited about Robinhood’s business prospects and potential ways we could partner with them.”
On the Flipside
- Despite the speculation turning out to be false, the price of Robinhood (HOOD) shares surged by as much as 14% on Monday afternoon.
Why You Should Care
Though many analysts consider a partnership or acquisition to be of benefit to Robinhood, they believe that the crypto brokerage platform is capable of remaining independent.
Learn more about the struggles of Robinhood in the article below:
The Charm Fades: Users Leave Robinhood
Find out more about the FTX fund injections:
Crypto Lending Platform BlockFi Gets $250 Million Bailout Fund from FTX
Voyager Digital Reduces Withdrawal Limit from $25,000 to $10,000