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FTX, a cryptocurrency exchange, rejected a Bloomberg News story that said the business was in talks with Robinhood but had yet to make an offer.
According to Reuters, cryptocurrency exchange FTX has refuted media reports that it is interested in acquiring Robinhood.
The announcement came following a Bloomberg News article on June 27 that indicated the US-based business was in talks with Robinhood but had yet to make an offer.
Rumors of M&A
In a response to TechCrunch, FTX CEO Bankman-Friend stated that the business is not in the process of purchasing Robinhood. He stated:
“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.”
Given that the Bankman-Friend owns 7.6 percent of Robinhood, it's no wonder that the rumors circulated.
Robinhood has struggled to maintain a solid shape since its popularity peaked in 2021 as a result of the meme stock wave.
However, the trading firm's income has dropped 48 percent year on year, from $522 million to $299 million. Similarly, the number of active users fell from 17.7 million in 2021 to 15.9 million in March 2022.
However, Robinhood's stock rose 14 percent as the rumor got traction before dipping roughly 3 percent in after-hours trade. The shares were trading at $9 at the time of publication.
FTX is assisting troubled crypto companies.
The severe crypto market fall has brought some crypto organizations to its knees. Several firms have declared layoffs and reduced their operations as worries of insolvency or liquidation grow.
FTX, on the other hand, has been offering crucial bailouts to faltering blockchain enterprises.
On June 21, it was announced that FT has begun negotiations with BlockFi to extend a $250 million credit line. To weather the crypto cold, the troubled crypto lending business has previously reduced its employees.
Similarly, FTX CEO Bankman-Friend, through another of his Alameda enterprises, financed $200 million and 15,000 Bitcoin to cryptocurrency brokerage voyager Digital.
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