NEW YORK (AP) — The CEO of cryptocurrency exchange FTX has purchased a 7.6% stake in Robinhood Markets, in keeping with a submitting with U.S. regulators on Thursday.

Samuel Bankman-Fried stated in the submitting that he purchased the shares considering they had been a pretty funding and that he doesn’t at present have any plans to alter or affect the management of Robinhood.

Robinhood shot to fame for its easy-to-use buying and selling app, which introduced a brand new technology of traders to the inventory market, maybe most famously with the meme-stock frenzy that despatched GameStop hovering early final yr. But crypto has turn into a significant half of its enterprise.

About 1 / 4 of the income Robinhood made in the course of the first three months of the yr from buying and selling by prospects got here from cryptocurrencies. Robinhood has been bolstering its crypto enterprise, rolling out crypto wallets for its prospects and including new cash to commerce on its platform.

Bankman-Fried constructed his stake in Robinhood via an organization known as Emergent Fidelity Technologies, shopping for shares steadily from March 14 via Wednesday. The inventory’s value fell over that point, because it has usually since briefly touching $85 shortly after its debut on the Nasdaq in the summer time of 2021.

Robinhood’s inventory has plummeted as its progress has slowed sharply. It reported a bigger loss for the primary quarter of this yr than analysts anticipated. The firm stated volatility in inventory and crypto markets saved informal traders away, or a minimum of made them extra cautious and fewer more likely to do massive trades.

Robinhood’s inventory jumped practically 27% in after-hours buying and selling Thursday following the disclosure. It rose 5% earlier in the course of the common buying and selling session to shut at $8.56.

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