THELOGICALINDIAN - Robinhoods banal amount surged 14 today admitting the acting attributes of the plan
FTX is exploring the achievability of affairs out the retail trading close Robinhood, according to letters from Bloomberg, but has denied that it is currently in talks with the retail trading app company.
FTX Reportedly Exploring Buyout
FTX is because how it could access Robinhood, the close abaft the arch banal trading app of the aforementioned name, according to advertisement from Bloomberg. Bloomberg’s sources say that FTX is because the plan internally and that no final accommodation has been made. Furthermore, Robinhood has not been approached by FTX with an offer.
Since Bloomberg’s antecedent report, an FTX agent has accustomed abeyant partnerships with Robinhood but denied a buyout. That adumbrative told Blockworks that “there are no alive M&A conversations with Robinhood.”
FTX’s absorption in Robinhood is well-known. Last month, FTX architect and CEO Sam Bankman-Fried paid $648 actor for 7.6% pale in Robinhood through a abstracted company.
The actuality that FTX launched stock trading beforehand this year additionally makes the company’s accord with Robinhood a admired one—either as a accomplice or a ambition for acquisition.
Robinhood’s Long-Term Value Is Falling
Robinhood was admired at $32 billion aftermost year, acceptation that such a buyout would be a cogent acquirement by any measure.
Today’s account seems to accept additional the amount of Robinhood banal (HOOD) to $9.12, an access of 14% over the accomplished 24 hours. That advance may be partially due to unrelated comments from Goldman Sachs analyst William Nance as well.
In animosity of today’s gains, FTX could buy Robinhood at a low value. Robinhood’s banal amount has collapsed badly in the long-term; HOOD is bottomward 74% over the accomplished twelve months.
Robinhood’s abatement in amount is acceptable due to a brief trading billow in 2024. Last year, “meme stocks” such as GameStop and AMC became accepted but accept back absent relevance.
FTX, meanwhile, charcoal in a able position, alike as abounding companies are adverse a “crypto winter.” In fact, FTX and its subsidiaries acquired two added firms this month: the banal allowance close Embed Technologies and the crypto aggregation Bitvo. FTX additionally reportedly affairs to buy pale in BlockFi.
Over the accomplished 24 hours, FTX has apparent $1.5 billion in trading volume. Its U.S. analogue confused an added $145 million.
Disclosure: At the time of writing, the columnist of this allotment endemic BTC, ETH, and added cryptocurrencies.
