Sam Bankman-Fried, a billionaire in the digital space, disclosed a 7.6% stake in the online broker.
According to a Thursday regulatory filing with the US Securities and Exchange Commission, Bankman-Fried's investment firm, Emergent Fidelity Technologies, acquired about 56.3 million shares in the Robinhood markets.
Based on the closing share price of $8.56, the stake is worth $482 million. According to the SEC filing, Bankman-Fried paid about $658 million for the shares.
The founder and CEO of FTX is Bankman-Fried. He has a net worth of $11 billion.
California-based Robinhood was founded in 2013 but was thrust into the spotlight last year on the back of a meme-stock craze. At its full-year results announcement in January, the company said that it had 22.7 million users at the end of 2021.
The no-commission trading platform lost money. Since its IPO, its stock price has fallen over 70%. The company said in April that revenue fell in the first quarter as trading activity fell. The area has been identified as a growth area.
The share price of Robinhood went up by over 5% on Thursday. After surging as much as 37% to $11.70, they were last up about 24% at $10.60 a share.
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