A new report claims that cryptocurrency derivatives exchange FTX is considering acquiring Robinhood Market. However, CEO Sam Bankman-Fried quickly clarified the situation, stating that no buyout talks had taken place.
Sam Bankman-Fried: Partnering, not merging
According to a report in Monday’s Wall Street Journal, FTX is considering a takeover of Robinhood. Although no acquisition decision has been taken, FTX is said to be giving the idea serious consideration.
According to Bloomberg’s source, FTX has yet to approach Robinhood with a buyout bid and may still decide not to pursue a deal.
Bankman-Fried stated in a follow-up statement to Bloomberg that his firm is enthusiastic about potentially partnering with Robinhood, but that there are no active merger discussions.
“We are excited about Robinhood’s business prospects and potential ways we could partner with them […] That being said, there are no active M&A conversations with Robinhood,” Bankman-Fried said.
FTX on a roll
The news that Fidelity Investments would not be laying off its employees in the midst of a cryptocurrency exchange industry-wide reduction came as no surprise. On June 6, Bankman-Fried tweeted that his trade will “keep growing” for the foreseeable future.
FTX has shown no indications of halting its growth despite the advent of crypto winter. The exchange recently made a bailout offer of $250 million to Bitcoin lender BlockFi. FTX agreed to purchase Canadian cryptocurrency company Bitvo for an unknown sum earlier this month.
Since making its Nasdaq debut in July 2021, Robinhood, a discount brokerage platform, has lost about three-quarters of its value. The company’s share price increased 13% on Monday, although it is still down more than 75% from its IPO.
Robinhood’s net income fell to $299 million in the first quarter of 2022, a 43% year-over-year fall. Over the same year, revenue related to cryptocurrencies fell by 39% to $54 million.