- The stock price of Robinhood (NASDAQ: HOOD) surged by over 20% pre-market today. This is why.
The stock price of Robinhood (NASDAQ: HOOD) surged by over 20% pre-market today. Investors are responding positively to FTX CEO Sam Bankman-Fried buying a 7.6% stake in Robinhood. This was revealed in a regulatory filing. FTX is a popular and rapidly growing crypto exchange.
The investment was made through a business called Emergent Fidelity Technologies. Emergent Fidelity Technologies took a stake valued at $648 million. And Bankman-Fried is the sole director and majority owner of Emergent Fidelity Technologies.
The document says that Bankman-Fried acquired the shares based on the belief that it represents an attractive investment.
“The Reporting Persons intend to hold the Shares as an investment, and do not currently have any intention of taking any action toward changing or influencing the control of the Issuer,” says the filing. The filing also says that Bankman-Fried may engage in discussions with management from time to time.
“Of course, we think it is an attractive investment too,” said Robinhood in a tweet responding to the investment.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.