Crypto billionaire Sam Bankman-Fried is taking a 7.6% stake in trading app Robinhood, according to a Securities and Exchange Commission (SEC) filing. The position is worth around $648 million.
Bankman-Fried, CEO of cryptocurrency exchange FTX, made the investment through a firm called Emergent Fidelity Technologies, the filing says. Bankman-Fried is the sole director and majority owner of Emergent.
He acquired the over 56 million shares of Robinhood “in the belief that the Shares represent an attractive investment,” the filing says. “The Reporting Persons intend to hold the Shares as an investment, and do not currently have any intention of taking any action toward changing or influencing the control of the Issuer.”
Bankman-Fried is now the third-largest Robinhood shareholder, according to Bloomberg data.
He could not immediately be reached for comment.
Following the news, shares of Robinhood stock jumped up 29% in extended trading.
This boost comes after Robinhood stock hit a 52-week low of $7.71 on Thursday before closing at $8.56.
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