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Robinhood shares skyrocket as crypto exchange CEO buys 7.6% stake

HOOD shares are up over 22% in pre-market trading.

Robinhood shares skyrocket as crypto exchange CEO buys 7.6% stake
Sam Bankman-Fried. [Source Images: Lam Yik/Bloomberg/Getty]

Robinhood shares (HOOD) have taken a beating in 2022. As of close yesterday, HOOD shares were trading at nearly an all-time low. HOOD shares took their most recent major dip in late April when the company announced disappointing Q1 results.

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But now HOOD shares are on the upswing again. At the time of this writing, HOOD shares are up over 22% in pre-market trading to $10.50. The reason? Crypto exchange FTX’s CEO Sam Bankman-Fried has taken a 7.6% stake in the company, reports CNBC.

A Securities and Exchange Commission filing detailing the stake said Bankman-Fried acquired the shares in the belief that “the Shares represent an attractive investment.” The filing also reveals that Bankman-Fried does not have any current interest in “influencing the control” of Robinhood. However, the filing also states Bankman-Fried “may from time to time engage in discussions as a stockholder with representatives” from Robinhood.

If so, Robinhood may gain substantially from his insight. Crypto trading is increasingly an important part of the services it offers uses. In early April, Robinhood made a crypto wallet available to nearly all of its users.

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About the author

Michael Grothaus is a novelist, journalist, and former screenwriter. His debut novel EPIPHANY JONES is out now from Orenda Books. You can read more about him at MichaelGrothaus.com

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