Crypto Analytics

FTX’s Sam Bankman-Fried Sees Opportunity in Troubled Markets

  • Bankman-Fried acquires a 7.6% interest through Emergent Fidelity Technologies, of which he is the sole director and majority owner
  • The shares purchased were worth around $605 million as of Friday afternoon

The head of crypto exchange FTX has bought a 7.6% stake in investment platform Robinhood.

Although Sam Bankman-Fried’s company was not involved in the transaction, he said FTX could participate in the next wave of upcoming mergers and acquisitions that he predicts.

Bankman-Fried, founder and CEO of FTX, has bought around 56 million shares of Robinhood, according to a recent announcement regulatory filingat a price of around 648 million US dollars.

Shares were trading at around $605 million as of 3:45 p.m. ET Friday, up about 25% from the previous day but still below the price he paid.

The purchase was made through Emergent Fidelity Technologies, a company incorporated in Antigua and Barbuda, according to the document. Bankman-Fried is the majority owner of Emergent.

Bankman-Fried declined to comment today on the Robinhood deal, in which FTX was not a party, but said in a recent interview with Blockworks that the difficult market conditions in the digital asset space could spark a wave of M&A activity .

“There’s going to be a lot of mergers and acquisitions,” he said, adding that “it wouldn’t be totally shocking” for FTX to take over some business from declining exchanges.

FTX’s US subsidiary bought digital currency futures and options exchange LedgerX last year to bring crypto derivatives to its US user base. More recently, FTX announced in February that it would acquire fintech company Liquid Group to circumvent Japan’s crypto exchange laws.

A Robinhood spokesperson also declined to comment, instead referring to a Twitter thread the company posted Thursday.

“We are doubling down on creating a multi-generational business where clients can build wealth for their generations,” the tweet reads. “Of course we also think it is an attractive investment. We have the best customer base, launch great new products and we have the team to deliver.”

Robinhood reported a net loss of $392 million for the first quarter.

The company’s net income was $299 million for the first three months of 2022 compared to $522 million in the first quarter of 2021. Transaction-based income was $218 million, approximately half the year-ago figure . Crypto transactions accounted for $54 million of that revenue, compared to $88 million in the first quarter of 2021.

Dan Keeler contributed to this story.

Post FTX’s Sam Bankman-Fried Spots Opportunity in Troubled Markets is not financial advice.

Source: Crypto News Austria

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