Robinhood has been in the crypto news world for several years now. The relationship of the firm with the crypto community has been bitter-sweet. At some point, many in the crypto space were calling for its cancellation in terms of investors dumping the stock, most notably in its involvement in the GameStop saga.
However, this time around, the company welcomed some great news on May 12 after Sam Bankman-Fried acquired a 7.6% stake in the trading app. Bankman-Fried is the CEO of FTX crypto exchange. His purchase of the Robinhood stake saw the firm’s share price surge by more than 20% on Friday.
Emergent Fidelity Technologies, of which Bankman-Fried is the sole director, took a stake worth around $648 million in Robinhood, based on the latest SEC filing. The news pushed the Robinhood shares to explode by up to 36% in extended trading on Thursday from an all-time low for the stock in regular trading.
By May 13 mid-morning, the stock had gained around 23%, trading at $10.57. However, it is still way down from $38 IPO price of last July.