Shares in Robinhood Markets (HOOD) rose as much as 28% in after-hours trading as a 13D filing revealed that Sam Bankman-Fried (SBF) had taken a 7.6% stake.
Sam Bankman-Fried, founder and CEO of the cryptocurrency exchange FTX, purchased 56 million shares of HOOD. This gave him a 7.6% stake in the retail trading platform, according to the 13D filing.
SBF purchased the shares through a company called Emergent Fidelity Technologies Ltd., which Bankman-Fried is the sole owner of. The stake, based on after-hours trading at the time of writing, stood at around $560 million. Based on the closing price of $HOOD, the stake was worth slightly over $479 million.
HOOD’s stock was up 28% in after-hours trading after closing at $8.56 earlier in the day, according to NASDAQ data via TradingView.In response to an inquiry about the stake, a Robinhood spokesman directed The Block to the following Twitter thread. “We’re doubling down on creating a multi-generational company where customers can build wealth for their generations,” Robinhood said in the first of three tweets. “Of course we think it is an attractive investment too. We have the best customer base, are introducing great new products, and we have the team to deliver. Our journey is just beginning.” Editor’s note: This story was updated with additional information about the value of SBF’s stake in HOOD based on the closing price, as well as Robinhood’s response.