FTX Exploring a Deal To Buy Robinhood

According to Bloomberg, the cryptocurrency exchange FTX is reportedly considering a deal to acquire digital trading platform Robinhood. From a report: Robinhood has not yet received a formal notice from FTX of any such takeover, the report said, while adding that FTX could ultimately choose not to pursue a purchase. The report of a potential acquisition by FTX comes just over a month after Sam Bankman-Fried, the CEO and founder of FTX, disclosed a 7.6% stake in Robinhood, paying $648 million at the time. As of Monday's close, this position was worth closer to $513 million. In a statement to Yahoo Finance following this report, Bankman-Fried said: "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. That being said there are no active M&A conversations with Robinhood."

In recent days, Bankman-Fried's companies -- FTX and Alameda Research -- have offered loans to crypto firms in rough financial straits, with some likening his actions to those of Warren Buffett's during the Financial Crisis. Bankman-Fried's crypto exchange FTX offered crypto lender BlockFi a $250 million line of credit. Meanwhile, the 30-year old billionaire's trading firm, Alameda Research, has given Canadian crypto exchange Voyager a total line of credit in cash and crypto equal to more than $500 million. Similar to what Binance's founder, Changpeng Zhao, told Yahoo Finance, Bankman-Fried's actions could be interpreted both as a profit-making opportunity and a way to squash contagion in a sector where firms remain deeply intertwined in their financial dealings.

house of cards

[awwshit]

What is next, sports betting? I want to convert my winning bets directly into crypto and then into stocks and then back into bets again. I think I can leverage my crypto to buy stocks then leverage the stock to bet on the big game. If we all do it at the same time nothing bad can happen, I promise.

Re:house of cards

[Great_Geek]

How nice of FTX. It looks like they are now cleaning on crypto-currencies and want to share the wealth with experienced investors on Robinhood.

[Translated: FTX is loading up on junk crypto and looking for fools to buy the junk.]

Re:

[gosso920]

Eventually, they're going to run out of Other People's Money.

Re:

[Catvid-22]

FTX is just looking after its own interest. If the market totally collapses, what else would be left to exchange but zeros?

Re:

[splutty]

It's gambling all the way down.

Some Advice

[SuperKendall]

According to Bloomberg, the cryptocurrency exchange FTX

Hey Robinhood, if you do sell don't take payment in Bitcoin!

They're trying to find a new line of business

[rsilvergun]

to keep themselves going as crypto collapses. Meanwhile I've seen mid range vid cards finally at MSRP ($500-$600, still inflated but that's supply chains) and the low end (e.g. 6600 and 3050) around $300. Oh, and you can _finally_ get an 8 GB RX 580 off ebay for under $150 again. I've got an old mining card 580 that's been my workhorse for about 3 years now, bought during the last crypto crash.

An obviously healthy development!

[fuzzyfuzzyfungus]

I think we can all agree that a round of hasty consolidation is the soundest course of action to put a sector riddled with poorly understood and deliberately obfuscated systemic risk back on an even keel.

what could possibly go wrong?

[Tablizer]

A dirtbag merging with a slimebag.

Synergy!

[thegarbz]

By leveraging a scam investment platform we can maximise the synergies in our scam financial currency and achieve unheard of efficiencies in scamming people.

Not so fast, pardner

[quonset]

FTX CEO Sam Bankman-Freid says there is no active discussion [marketwatch.com] about any merger or acquistion.

“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.

"total line of credit in cash and crypto equal to"

[splutty]

I think that line trying to equate loans in cash and crypto is the most hilarious thing I've seen the last week or so.

Musk should buy it, already got half the suckers .

[tekram]

Musk already has the hearts and minds of half the suckers on Robinhood. All Musk has to do is buy RH and turn it into a pump and dump media platform in addition to trading and save himself the trouble and money of buying Twitter. I think Musk is just afraid that if he did that he would go directly to jail.