Floki Inu Soars to New Heights in the Cryptocurrency Market
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2022-05-13 | Selina Mathew
Following the acquisition of a 7.6% interest in the firm by billionaire Sam Bankman-Fried, shares in the popular online stockbroker Robinhood have risen over 30% in after-hours trading.
The millionaire founder and CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, has purchased a 7.6% interest in Robinhood, a popular online brokerage.
The market reacted positively to the news, with Robinhood's (HOOD) stock price immediately rising by more than 30% in after-hours trading. The price has settled at a 24 percent total gain at the time of writing.
Bankman-Fried bought $648 million in Robinhood shares at an average price of $11.52, according to a securities filing with the Securities and Exchange Commission on Thursday.
The purchases, according to Bankman-Fried, started in mid-March and lasted until Wednesday.
Bankman-Fried stated in the securities filing that he had "no intention of taking any action toward altering or influencing the control of [Robinhood]," and that he was merely looking for a "attractive investment."
"Of course we think it is an interesting investment too," Robinhood's PR team tweeted to their 82,000 followers, echoing what Bankman-Fried claimed in his securities filing.
Bankman-fried is the only director and primary owner of Emergent Fidelity Technologies Ltd, an Antiguan company that handled the deal.
After its stock price hit a new all-time low of $7.73 on March 12, just one day after the brokerage business reported that its crypto transaction income had fallen 39 percent year-over-year, the statement appears to have brought some short-term solace to Robinhood investors (YOY).
As income from stock-related trading has plummeted, Robinhood has made considerable inroads into the cryptocurrency industry. Robinhood now allows customers to trade bitcoin, putting it in direct rivalry with Coinbase and Gemini, two major US-based cryptocurrency exchanges.
According to Robinhood's Q1 2022 report, crypto-related transactions accounted for around 18% of its Q1 net income, although transaction-based revenue from cryptocurrencies fell 39% YOY to $54 million, down from $88 million in Q1 2021.
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