Sam Bankman-Fried, CEO of crypto exchange FTX, has bought a substantial 7.6% stake in stock and crypto trading app Robinhood, according to a filing today with the U.S. Securities and Exchange Commission.

News of the purchase sent Robinhood shares soaring by over 30% in after-hours trading. As of writing, the stock had come back down a bit, to $10.72.

Per the SEC filing, Bankman-Fried bought just over 56 million shares of Robinhood via a firm called Emergent Fidelity Technologies; the stake is currently worth about $600 million.

The investment comes at a time when Robinhood’s fortunes and revenues have been on the decline; just hours before news of Bankman-Fried’s investment in the company, Robinhood shares hit an all-time-low of $7.71.

The stock has dropped steadily since hitting $55 shortly after its IPO last July. Since then, company revenues have similarly been on a downswing. Most recently, the company saw an 18% decline in revenue for Q1 2022. Three weeks ago, it laid off 9% of its workforce, citing a global downturn in casual-investment activity as the reason for slowing growth.

And yet the same quarterly report revealed that in one division, Robinhood was actually experiencing an upswing: crypto. While investment in traditional assets faltered, the app saw a 13% increase in cryptocurrency trading revenue in Q1. Robinhood has been steadily expanding its crypto offerings: Last month, it added Solana, Shiba Inu, Polygon, and Compound to the platform.

In his SEC filing, Bankman-Fried stated that he does not have any intention to change or influence Robinhood’s…

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