Shares of popular stock trading app Robinhood surged higher on Monday after reports that billionaire Sam Bankman-Fried’s cryptocurrency exchange, FTX, is considering a deal to buy the company just over a month after he first disclosed a stake.
One of the largest crypto trading exchanges in the world, rivaling the likes of Coinbase and Binance, FTX is internally debating how to pursue a full acquisition of Robinhood, Bloomberg first reported on Monday, citing people familiar with the matter.
Shares of Robinhood spiked on the news, rising as much as 18% before getting halted for trading shortly at approximately 3:10 pm EDT.
The stock held on to most of its gains after trading resumed at 3:15 pm, still rising by 14% on Monday.
Robinhood has yet to receive a formal takeover offer, while FTX has not made a final decision on whether to pursue the deal and could still opt out, according to Bloomberg.
The report comes just over a month after billionaire Sam Bankman-Fried, the founder and CEO of FTX, first disclosed a 7.6% stake in Robinhood worth roughly $650 million, according to regulatory filings.
Bankman-Fried at the time called Robinhood shares “an attractive investment,” causing the stock to soar over 20% in a single day on May 14.