FTX CEO Sam Bankman-Fried Denies Reports Of Acquiring Robinhood
FTX is acquiring a stake in the beleaguered crypto lending firm BlockFi.
San Francisco: Global crypto exchange FTX has clarified that it is not in active talks to acquire Silicon Valley-based online trading app Robinhood, the media reported on Tuesday.
A TechCrunch report said that FTX is "excited" about Robinhood's business prospects but is not talking about acquiring the platform.
"We are excited about Robinhood's business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built," FTX CEO Sam Bankman-Fried was quoted as saying in the report.
"That being said there are no active M&A conversations with Robinhood," he added.
Earlier media reports claimed that FTX was exploring opportunities to acquire Robinhood.
A Robinhood spokesperson said that the company has dual-class shareholder setting where founders control more than half of its voting power.
"As such, no deal can be struck to purchase the company without their explicit approval," said the report.
Last month, Bankman-Fried announced that he bought a 7.6 percent stake in Robinhood Markets.
Robinhood facilities commission-free trades of stocks, exchange-traded funds, and cryptocurrencies via a mobile app introduced in March 2015.
The company's revenue comes from three main sources: interest earned on customers' cash balances, selling order information to high-frequency traders, and margin lending.
Leading crypto change FTX is also acquiring a stake in the beleaguered crypto lending firm BlockFi.
According to Wall Street Journal, FTX is currently in discussions with BlockFi regarding the stake in the firm.
The acquisition talks came as BlockFi secured a $250 million line of credit from FTX, which the crypto industry largely recognised as a "bailout."
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
Top Headlines
