Shares in Robinhood are up 20% after Sam Bankman-Fried bought 7.6%.

Sam Bankman-Fried, CEO of FTX US Derivatives, testified during a hearing of the House Agriculture Committee entitled Changing Market Roles: The FTX Proposal and Trends in New Clearinghouse Models, Thursday, May 12, 2022 in the Longworth Building.

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Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, has acquired a 7.6% stake. Robin Hoodaccording to a filing Thursday with the Securities and Exchange Commission.

Shares of the investment firm rose 36% at one point in extended trading before retiring. They had lasted up to about 25%.

During regular trading on Thursday, the stock hit an all-time low. Robinhood closed the session at a price of $ 8.56, about 77% lower than last July’s IPO price.

According to the document, Emergent Fidelity Technologies took a $ 648 million stake in Robinhood. Bankman-Fried is the sole director and majority owner, he says.

The document goes on to state that Bankman-Fried acquired the shares in the belief that they “represent an attractive investment”. “The Reporting Persons intend to hold the Shares for investment purposes and have no intention at present to take any action to change or affect control of the Issuer,” it is stated. Although the filing also stated that it may “engage in discussions” with management from time to time.

“Of course we think it’s also an attractive investment,” Robinhood’s communications team said in a tweet Thursday evening in response to the news of the investment.

Bankman-Fried currently has no plans to take any further action, but at some point, if circumstances change, it may review “options to increase shareholder value through, among other things, various strategic alternatives or operational or management initiatives.” , according to the document. It also says it could acquire additional shares.

FTX, of which Bankman-Fried is CEO, is one of the largest cryptocurrency exchanges in the world and offers derivative products for the most sophisticated traders, in addition to spot trading. FTX has become a rival of Coinbase and Binance, although it does not offer its services in the United States

Robinhood began by allowing retail investors to invest in stocks, but was hugely successful when it launched its cryptocurrency trading platform in 2018. Since then, cryptocurrency trading has become important to the company’s bottom line. In the fall, Robinhood revealed hers test a crypto wallet and said the waiting list had exceeded 1 million customers.