By: Economic & Finance Report
It is perceived that FTX & Almeda Research’s founder Sam Bankman-Fried is considering buying the financial trading platform Robinhood (HOOD: NASD). Bankman-Fried already has a 7.6% stake in the financial platform, worth a little more than $510 million USD (as of June 28, 2022). Mr. Bankman-Fried has already indicated he believes that Robinhood (HOOD: NASD) is a strong and capable financial institution, and his investment in the app, was more of solidarity with the trading platform.
FTX & Almeda Research (companies founded and owned by Mr. Bankman-Fried); have given out loans to global crypto firms that have been suffering deficits recently. The lifelines were provided; in what Sam Bankman believes the companies are suffering from small deficiencies but are strong enough to withstand long term volatilities from the unpredictable markets. FTX has given BlockFi a $250 million USD credit line; while Almeda has provided crypto exchange marketplace Voyager, a $500 million USD credit line.
The cryptocurrency market has fallen over 60% since its peak from last year (2021). Robinhood’s overall revenue is down 76% from the previous year (2021) as well. Robinhood has been suffering from diminished trading value and depletion of accounts; so it will be interesting if in fact any negotiations are ongoing between FTX and Robinhood? Sam Bankman has already deferred any indication that there are M&A negotiations going on with Robinhood (HOOD: NASD) and his FTX firm. He has stated that currently there is no interest or appetite to take over Robinhood (HOOD: NASD) as it stands.
FTX & Almeda Research are in strong capital reserves positioning; they are only seeking to invest and lend to companies that they believe have strong fundamental values and operational structures; as Mr. Bankman-Fried has made clear in past sentiments. The cryptocurrency market is hitting a tough stride currently; and many people are watching to see what crypto financial institutions will be impacted by this. -SB
Image Source: The Coin Rise
Bankman-Fried’s FTX Is Seeking a Path to Buy Robinhood (yahoo.com)
El Salvador’s Bitcoin Utilization Is Not Faring Well!!!!!!!!!!!! – ECONOMIC AND FINANCE REPORT