Robinhood Rallies On FTX Buyout Rumours

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.

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