{"id":61389,"date":"2022-05-13T10:26:37","date_gmt":"2022-05-13T07:26:37","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61389"},"modified":"2025-09-05T11:52:35","modified_gmt":"2025-09-05T08:52:35","slug":"ftx-chief-acquires-7-6-stake-in-robinhood","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ftx-chief-acquires-7-6-stake-in-robinhood\/","title":{"rendered":"FTX chief acquires 7.6% stake in Robinhood"},"content":{"rendered":"

The Emergent Fidelity Technologies, the firm linked to FTX chief Sam Bankman-Fried, has become the owner of a 7.6% stake in the online broker Robinhood. This follows from the Form 13D filing<\/a>.<\/p>\n

Robinhood’s shares rose as high as 28% in after-hours trading. The regular session closed up 5.03%.<\/p>\n

The firm bought 56.28 million Robinhood shares for $648.29 million. The purchase price was $11.52 per share, implying upside of about 34.57%. Since the news was released, the market has largely priced in much of that upside.<\/p>\n

Emergent Fidelity Technologies is registered in Antigua and Barbuda. Its sole director and owner is Bankman-Fried.<\/p>\n

The document states that the buyer regards the deal as an ‘attractive investment’. It is described as a portfolio investment.<\/p>\n

Since the start of the year, Robinhood’s shares have fallen 51.8%. Since the IPO, losses have reached 77.47%. From their all-time high, the stock has fallen 90.3%.<\/p>\n

Robinhood’s app gained popularity during the pandemic and the surge in interest in Dogecoin. Trading of Dogecoin, the largest meme token, in the second quarter of 2021 generated over 40% of the company’s revenue.<\/p>\n

Subsequent filings showed a decline in revenue from crypto trading and user activity. The first-quarter 2022 results were not an exception. Wall Street’s attitude toward Robinhood’s shares may also have been influenced by risks of revising SEC<\/span> regulation or banning payment-for-order-flow. This practice accounts for a lion’s share of the company’s revenue.<\/p>\n

Earlier, Robinhood’s CEO Vlad Tenev called cryptocurrencies the foundation of the company’s future development. In April 2022, the online broker expanded access to the beta of its cryptocurrency wallet to 2 million customers and announced plans to integrate the Lightning Network “in the coming months”.<\/p>\n

In July 2021, Bankman-Fried did not rule out purchases by Goldman Sachs or CME Group in the future.<\/p>\n

In January 2022, FTX raised $400 million at a valuation of $32 billion. In the same month, the exchange’s U.S. unit announced plans to include stock trading in its product lineup.<\/p>\n

Subscribe to ForkLog news on Telegram: ForkLog Feed<\/a> \u2014 the full news feed, ForkLog<\/a> \u2014 the most important news, infographics and opinions <\/p>\n","protected":false},"excerpt":{"rendered":"

The Emergent Fidelity Technologies, the firm linked to FTX head Sam Bankman-Fried, has become the owner of a 7.6% stake in the online broker Robinhood. This follows from the Form 13D filing.<\/p>\n","protected":false},"author":1,"featured_media":61390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1236,1234,1403],"class_list":["post-61389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ftx","tag-robinhood","tag-sam-bankman-fried"],"aioseo_notices":[],"amp_enabled":true,"views":"27","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=61389"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61389\/revisions"}],"predecessor-version":[{"id":61391,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61389\/revisions\/61391"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61390"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}