The CEO of Crypto exchange FTX, Sam Bankman-Fried, has bought a 7.6 percent stake in trading app Robinghood.
Bankman-Fried's sizeable stake in Robinhood was revealed in a regulatory filing made on Thursday. The stake was bought on May 2, documents with the Securities and Exchange Commission revealed.
56 Million Shares
The purchase was executed through Antiguan firm Emergent Fidelity Technologies Ltd, according to reports. The documents showed Bankman-Fried bought more than 56 million shares worth around $482 million.
The crypto exchange CEO started building his position in Robinhood in March and he was lately capitalising on the falling share price of the trading app to further consolidate his position.
According to Forbes, Bankman-Fried, who founded the exchange in 2019, is worth $21 billion.
His investment in Robinhood came at a time when the app saw a drop in revenue and customer base. Robinhood is not making profits yet, but worse off, it is reporting revenue decline. The app reported a 43 percent decline in first-quarter revenue. It also reported a drop in monthly active users in April, according to Reuters.
The report also says that Bankman-Fried has no plans to take control of Robinhood. Currently, the founders have 64 percent shares in the company. It has also been stated that Bankman-Fried is not thinking of a merger of his platform with Robinhhod.
"The Reporting Persons intend to hold the Shares as an investment, and do not currently have any intention of taking any action toward changing or influencing the control of the Issuer," the filing said.
Meanwhile, Robinhood welcomed Bankman-Fried's decision to boost his investment in the company. "We have the best customer base, are introducing great new products, and we have the team to deliver. Our journey is just beginning," Robinhood said.
Shares of Robinhood rose more than 20 percent after the news of Bankman-Fried's investment. At one point the shares had risen as much as 36 percent.