In a recent report, Bloomberg said that the FTX, one of the biggest cryptocurrency exchanges, is in merger and acquisition (M&A) conversations with Robinhood Markets. However, this seemed to be a false report as the co-founder and CEO of the exchange Sam Bankman-Fried denied having such conversations.
FTX is open to partnering with Robinhood
According to a report from TechCrunch, Sam Bankman-Fried, also known as SBF in the world of crypto, stated that the firm is open to partnering with Robinhood Markets Inc but there are no talks of a merger or acquisition. It seems that the report by Bloomberg which cited people close to the FTX exchange as sources, was not true.
“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,” Bankman-Fried said. “That being said there are no active M&A conversations with Robinhood.”
It is important to note that Robinhood has a dual-class shareholder setup which means that the company’s founders have the major of voting power and no deal is possible without their approval. The founders have more than half of the voting power.
SBF acquired a 7.6% stake
As per a report from Cryptonary, SBF had acquired a 7.6% stake in Robinhood Markets Inc a month earlier. The purchase was confirmed in a filing with the Securities and Exchange Commission (SEC). The filing stated that the “Reporting Persons intend to hold the Shares as an investment and do not currently have any intention of taking any action toward changing or influencing the control of the Issuer.”