Robinhood Markets (NASDAQ: HOOD) rallied as much as 19% on the day today following rumours that the company may be on the verge of being bought out by FTX, a crypto exchange.
it was reported this afternoon by Bloomberg that the exchange is currently “deliberating internally” how it can go about acquiring the retail-heavy brokerage firm. Robinhood reportedly has not received a formal offer from the company, and a decision has reportedly not yet been made by FTX on whether to proceed with the potential purchase – signaling that the data leak may be a means of gauging market sentiment on such a move.
FTX, based in the Bahamas, is a crypto exchange that as of mid-July 2021 was said to have transacted on average $10 billion of daily trading volume on its platform. The firm presently offers derivatives, options, volatility products and leveraged tokens to traders, and is lead by Sam Bankman-Fried, whom is also behind Alameda Research.
Robinhood Markets last traded at $9.20 on the Nasdaq.
Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.