Robinhood (NASDAQ: HOOD) shares skyrocketed over 24% on Friday after the CEO of a major crypto exchange acquired a stake in the investing app. According to a document filed with the Securities and Exchange Commission, a company called Emergent Fidelity owned by Samuel Bankman-Fried took a 7.6% stake in Robinhood totaling USD648 Million.
According to a filing, Bankman-Fried purchased the shares because they "represent an attractive investment," he also "intends to hold the Shares as an investment" and does not expect to take "any action toward changing or influencing the control of the Issuer."
Nevertheless, the stock has already tumbled 40% throughout the year and subsequently revealed a large round of layoffs.
"Of course, we think it is an attractive investment, too. We have the best customer base, are introducing great new products, and we have the team to deliver. Our journey is just beginning," Robinhood added.
Amid the transaction, Bankman-Fried will be able to review "options for enhancing stockholder value through, among other things, various strategic alternatives or operational or management initiatives." Moreover, the document detailed that he also had the option of acquiring additional shares in the future.
The investment has the potential to help Robinhood regain its footing after struggling with the continued volatility in the financial markets. Similarly, Crypto brokerage rival Coinbase has also faced uncertainty.