FTX’s CEO recently acquired a 7.6% stake in Robinhood, sparking talks of a possible acquisition.
The CEO of Robinhood has come out to clarify that the company wouldn’t entertain merger and acquisition talks with cryptocurrency exchange FTX.
FTX’s CEO Sam Bankman-Fried acquired a 7.6% stake in FTX a few weeks ago. The move sparked reports that FTX could acquire Robinhood, one of the leading retail brokerage platforms in the world.
However, Robinhood’s CEO, Vlad Tenev, revealed on Wednesday that the company wouldn’t entertain merger and acquisition talks with FTX. Tenev said Robinhood has $6 billion in cash should the brokerage want to explore potential acquisitions.
The Robinhood CEO said;
“I love us as a standalone company. Robinhood has about $6 billion of cash that could be used for acquisitions, and the company sees opportunities in the current environment to make acquisitions.”
Tenev’s comment comes just a few hours after the company announced that it would eliminate about 23% of its staff, to streamline costs amid a continuing decline in monthly active users on the trading platform.
The CEO’s comment also comes a few days after FTX.US, the United States arm of the FTX exchange, launched stock trading features for its users across the United States.
Robinhood is known for offering users access to a wide range of financial assets, including stocks and cryptocurrencies. However, FTX has previously stayed within the cryptocurrency market.
At the time, FTX.US President Brett Harrison said;
“FTX Stocks is now live for US users! Residents of all 50 states (yes, including NY!), as well as PR and USVI, can sign up. Trade hundreds of stocks and ETFs from both the web (https://ftx.us/stocks) and the FTX US Pro mobile app.”
FTX.US’s move into the stock trading arena indicates that the company is ready to provide heavy competition for Robinhood in the market.