On an ugly days for crypto, it is perhaps ironic that HOOD shares are soaring after hours following a 13-D Filing that shows billionaire Sam Bankman-Fried - CEO/founder of crypto-exchange FTX - has taken a 7.6% stake in the online brokerage app.
Emergent Fidelity Technologies Ltd, a company whose sole owner is Bankman-Fried reported owning 56 million shares in Robinhood.
In the 'Purpose of Transaction' boiler plate, the text reads: "the Reporting Persons may from time to time engage in discussions as a stockholder with representatives of the Issuer, other stockholders of the Issuer or third parties regarding the performance of the Issuer and its business and investment returns."
This will make Bankman-Fried the 3rd largest holder of HOOD (behind IA Capital Advisors 9.72% and Galileo PTC Ltd 7.81%) and ahead of Cathie Wood's ARK with 4.08%.
This headline prompted a 25% surge in shares of HOOD - which was languishing at record lows...
With HOOD in play, we can't help but wonder when will the private equity titans with $3.5 trillion in dry powder follow suit and start chasing after bargains
Down from ATH pic.twitter.com/Ge38LAG7fQ— Ben (@Ben94548078) May 11, 2022