FTX CEO Sam Bankman-Fried Purchases 7.6% Stake in Robinhood; Share Prices Went Up Following the Announcement

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A filing today with the US Securities and Exchange Commission, or SEC, states that Sam Bankman-Fried, the CEO of FTX, has bought a massive 7.6% stake in the popular stock and crypto trading application Robinhood. The filing further notes that the FTX CEO bought just over 56 million Robinhood shares through a company called Emergent Fidelity Technologies.

As per the current market, Bankman-Fried’s Robinhood shares purchase could be valued at about $600 million. News of the massive purchase has also reportedly sent Robinhood shares upwards by as much as 30% in a matter of hours before going back down a bit. As of press time, an individual stock is valued at about $10.72.

Bankman-Fried’s investment in Robinhood came at a time when the trading app’s fortunes and revenues had been on an apparent decline. So much so that just hours before the announcement of the FTX CEO’s massive investment, Robinhood shares were at their absolute lowest, only priced at about $7.71 prior to the news breaking out.

Bankman-Fried stated in the SEC filing that he doesn’t have any plans to alter or influence Robinhood’s current path trajectory even as he becomes one of its biggest shareholders. According to him, his purchase of the stake in the company is made solely because it represents an attractive investment for him.

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