According to a filing with the Securities and Exchange Commission, FTX CEO Sam Bankman-Fried purchased a 7.6% stake in stock and cryptocurrency trading platform Robinhood. After the deal was announced, Robinhood's stock jumped more than 30%. As of this writing, the stock was trading at $8.56 per share.
The CEO of FTX bought the dip.
Bankman-Fried purchased roughly 56 million shares of Robinhood through a firm called Emergent Fidelity Technologies, according to the SEC filing; the investment is reportedly valued at around $600 million. The investment comes at a time when Robinhood's fortunes and sales have been declining; Robinhood shares had hit an all-time low of $7.71 only hours before news of Bankman-investment Fried's in the company broke. Perhaps the FTX CEO actually bought the dip.
The stock has steadily dropped since peaking at $55 shortly after the IPO in July. Corporation profits were made when the economy took a turn for the worst. The company's sales dropped 18 percent in the first quarter of 2022. It laid off 9% of its workforce three weeks ago, blaming the company's weak growth on a global slowdown in casual investment activity.
However, one section of Robinhood, crypto trading, saw an increase in the same quarterly report. The first quarter of this year saw a 13 percent growth in cryptocurrency trading income. Last month, Robinhood added Solana, Shiba Inu, Polygon, and Compound to its crypto offerings, continuing its steady expansion.
According to Bankman-SEC Fried's filing, investing in Robinhood was a "attractive investment," and he has no plans to change or influence the company's destiny. In reaction to the comment, Robinhood's public relations team tweeted, "Of course we believe it is an excellent investment too."