The cryptocurrency exchange FTX is reportedly considering a deal to acquire digital trading platform Robinhood (HOOD), Bloomberg reported Monday, citing unnamed people familiar with the deal.
Robinhood has not yet received a formal notice from FTX of any such takeover, the report said, while adding that FTX could ultimately choose not to pursue a purchase.
The report of a potential acquisition by FTX comes just over a month after Sam Bankman-Fried, the CEO and founder of FTX, disclosed he had amassed a 7.6% stake in Robinhood.
Robinhood shares soared more than 21% at session highs following the report, triggering at least one trading halt for volatility in the stock.
Shares of Robinhood had tumbled by more than 55% for the year-to-date through Friday’s close.
Bloomberg’s report comes just hours after analysts at Goldman Sachs upgraded shares of Robinhood to Neutral from Sell. Goldman put a $9.50 price target on shares while saying “we now see a more balanced risk-reward” for Robinhood.
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.
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