FTX Founder, Sam Bankman-Fried, has purchased a 7.6% stake in Robinhood as the broker’s shares hit an all-time low at $8.15, CNBC reports, citing a regulatory filing with the US Securities and Exchange Commission. Shortly after the news broke, shares surged 36% before dropping back.
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According to the report, Emergent Fidelity Technologies — where Sam Bankman-Fried is the sole director — took a stake worth $648 million. The company wrote in the filing that, according to Emergent Fidelity Technologies, Robinhood’ shares “represent an attractive investment.”
“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,” the report says.
Although no details about Bankman-Fried’s further actions were disclosed, the document reads that under circumstances the FTX CEO might consider options for “enhancing stockholder value through, among other things, various strategic alternatives or operational or management initiatives.”
The move comes after Robinhood CEO said that the company would reduce staff by “approximately 9%” as the company’s rapid headcount growth led to duplicate roles and complexity. Tenev added that these reductions are the “right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers.”
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