Emergent Fidelity Technologies, affiliated with FTX CEO Sam Bankman-Freed, has acquired a 7.6% stake in online broker Robinhood. This is due to the reporting on Form 13D.

Robinhood stock prices were up 28% at their maximum in the post-trading session. The main session ended with an increase of 5.03%.

The company, which bought 56.28 million shares of Robinhood for $648.29 million, had a purchase price of $11.52, indicating an upside potential of 34.57%. After the news was published, the market has already sold out in many ways.

Emergent Fidelity Technologies is registered in Antigua and Barbuda. Its sole manager and owner is Bankman-Freed.

The document says the buyer sees the deal as an “attractive investment.” It is a portfolio.

Since the start of the year, Robinhood shares are down 51.8%. Since public offering losses reached 77.47%. Since the historic peak, securities have dropped 90.3%.

The Robinhood app has become popular amid the pandemic and the surge in interest in Dogecoin. Trading with the popular meme token accounted for more than 40% of the company’s revenue in the second quarter of 2021.

Subsequent reports noted a drop in revenue from crypto trading and user activity. Reporting for the first quarter of 2022 was no exception. Wall Street’s stance on Robinhood shares could also be affected by revision risks SEC regulating or prohibiting charging for order flow. This practice makes up the lion’s share of the company’s revenue.

Earlier, the CEO of the company, Vlad Tenev, described cryptocurrencies as the basis for future development of Robinhood. In April 2022, the online broker expanded its cryptocurrency wallet beta access to 2 million customers and announced plans to integrate the Lightning Network “in the coming months.”

Recall that in July 2021 Bankman-Fried did not refuse to buy Goldman Sachs or CME Group in the future.

In January 2022, FTX raised $400 million at a valuation of $32 billion. That same month, the U.S. division of the exchange announced its plans to include stock trading in its product line.