Robinhood CEO Shuts Down FTX M&A Chatter, Says He Has Money to Do His Own Deals

Robinhood has $6 billion in cash should the brokerage want to explore potential acquisitions, CEO Vlad Tenev said Wednesday.

AccessTimeIconAug 3, 2022 at 10:42 p.m. UTC
Updated Aug 4, 2022 at 7:36 p.m. UTC

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

The chief executive officer of Robinhood Markets (HOOD), the brokerage whose stock has lost about three-quarters of its value since its debut last year, tried to shut down speculation Wednesday that his firm might become a takeover target of crypto giant FTX.

FTX's billionaire founder, Sam Bankman-Fried, took a 7.6% stake in the brokerage firm in May. Bloomberg reported in June that FTX was exploring whether it could purchase the company, bolstering FTX's nascent efforts to offer stock trading to customers.

Vlad Tenev, the CEO of Robinhood, was asked Wednesday on an earnings conference call whether that might come to fruition.

“I love us as a standalone company,” he said. Tenev noted that Robinhood has about $6 billion of cash that could be used for acquisitions, and that the company sees opportunities in the current environment to make acquisitions. In April, Robinhood said it was buying U.K. crypto platform Ziglu.

Tenev spoke a day after his company said it would eliminate about 23% of its staff to streamline costs amid a continuing decline in monthly active users on the platform.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.