FTX is reportedly exploring the possibility of buying Robinhood. The crypto exchange led by CEO Sam Bankman-Fried is looking into whether it could acquire the online brokerage, according to a Bloomberg report that cited unnamed sources.
No final decision has been made, the report said. Bankman-Fried also downplayed the report in a statement to Bloomberg saying, “There are no active M&A conversations with Robinhood." In filings, Bankman-Fried revealed in May that he personally held a 7.6% stake in Robinhood.
Robinhood had no comment on the report, which sparked a rally in the company's shares. The stock closed up 14% Monday, helped as well by a Goldman Sachs analyst report upgrading it from sell to neutral.
Goldman noted that Robinhood’s stock price had plunged about 29% since it was downgraded to sell in April and it was reaching “a reasonable fundamental floor for the value of the company."