Shares of no-commission trading platform Robinhood (HOOD) were rising about 16% and trading was briefly halted after Bloomberg reported that crypto exchange FTX was looking into a possible deal to acquire the company, citing people with knowledge of the matter.
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No formal offer has been made yet and FTX could decide not to go forward with any plans, according to the report.
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In May, an SEC filing revealed that FTX founder and CEO San Bankman-Fried had purchased a 7.6% stake in Robinhood through an Antiguan firm called Emergent Fidelity Technologies Ltd.
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FTX did not immediately respond to a request for comment on the Bloomberg report. The report quoted Bankman-Fried as saying in an email that “We are excited about Robinhood’s business prospects and potential ways we could partner with them. That being said, there are no active M&A conversations with Robinhood.”
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On Monday morning, Goldman Sachs upgraded Robinhood shares from neutral to sell in a report that also downgraded Coinbase (COIN) shares due to the sharp decline in crypto prices and subsequent trading activity.
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Shares of Robinhood are down 47% this year.
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Commissions from cryptocurrency trading have become a growing part of Robinhood’s business.
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RobinhoodFTXSam Bankman-Fried
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