According to Sam Bankman-Fried, chief executive at crypto exchange FTX, the company is not having active conversations with Robinhood Markets Inc., after Bloomberg suggested that they were exploring a potential acquisition of that company. This follows from the article where Mr. Bankman-Fried denied any such talks.
“We are excited about Robinhood’s business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built,” Bankman-Fried wrote in an emailed statement to MarketWatch. “That being said there are no active M&A conversations with Robinhood.” Bankman-Fried wrote.
Bloomberg reports that FTX Holding is discussing how to purchase Robinhood. The latter, meanwhile, does not have a formal takeover approach by FTX.
“We believe that a potential deal would be good news for HOOD as it helps expand its reach and breadth,” analysts at Mizuho wrote in a Monday note. “We also believe that HOOD can survive, and thrive on its own.”
“It is important to note that the two founders of HOOD collectively own over 50% of the company and would need an agreement to proceed further in any M&A process,” according to the Mizuho analysts.
Bankman-Fried recently injected funds into two crypto companies that have been struggling, after crypto lender Celsius and hedge fund Three Arrows showed signs of trouble. .
Last week, Celsius’s rival, BlockFi said it had received a $250 million line of credit from FTX in order to strengthen its financial situation. Voyager Digital, a cryptocurrency brokerage, entered into a formal agreement with Alameda Ventures to raise $200 million in cash and a USDC-backed lending agreement. The company also borrowed 15,000 BTC.