Bloomberg reports FTX considering acquiring Robinhood, stock surges 14%, SBF denies

Earlier on the 28th, Bloomberg reported that sources revealed FTX is considering acquiring the well-known U.S. online brokerage Robinhood. However, FTX founder SBF denied these rumors to the media, stating that while FTX is excited about the prospects with Robinhood and potential ways they could collaborate, there are no active acquisition talks with Robinhood. Robinhood declined to comment on the matter.

Earlier on the 28th, Bloomberg reported that according to sources, internal discussions at FTX are considering acquiring the well-known U.S. online brokerage Robinhood. However, FTX's founder SBF denied the rumor to the media, stating that while FTX is optimistic about the future of Robinhood and potential collaboration, there are no active acquisition negotiations with Robinhood. Robinhood declined to comment on the matter.

Nevertheless, this move caused Robinhood's stock to jump by 14%; according to SEC filings, just last month SBF acquired a 7.6% stake in Robinhood, stating in the filing that Robinhood is an attractive investment target.

Foreign media TechCrunch reported that Robinhood uses a dual-class share structure, where governance rights are separated from economic rights. The company's founders hold over half of the governance voting rights, making it impossible to transfer operational control without their agreement. Given this setup, TechCrunch believes that the Robinhood founders may not be very interested in selling the business.

In fact, since going public in July last year, Robinhood's stock price has been declining. It is common practice to boost market value before deciding on a sale. Nonetheless, the cryptocurrency community is eagerly anticipating further industry expansion.