Robinhood Markets Inc (NASDAQ:HOOD) shares jumped 30% after crypto billionaire Sam Bankman-Fried was revealed to have become its third-largest shareholder, with a position worth around US$648mln.
The stake was revealed after the stock slid to a 52-week low of US$7.71 on Thursday, having topped US$70 in the weeks after its initial public offer last July.
Bankman-Fried, chief executive of cryptocurrency exchange FTX, took advantage of the weakness of shares of the trading app to build a position at an average price of US$11.52.
Robinhood's dual-class shares currently give its founders 64% of the voting shares.
The 7.6% sizeable stake in the online brokerage was made by a firm called Emergent Fidelity Technologies, according to a Securities and Exchange Commission (SEC) filing, where Bankman-Fried is the sole director and majority owner.
The SEC filing says Bankman-Fried purchased over 56mln Robinhood shares "in the belief that the shares represent an attractive investment."
"The reporting persons intend to hold the shares as an investment, and do not currently have any intention of taking any action toward changing or influencing the control of the issuer."
Amid the meme-stock boom and Dogecoin mania last year, Robinhood's revenue rocketed, but in April it announced the termination of about 9% of its full-time employees, with quarterly numbers that month showing much lower retail trading volumes and active user numbers, with revenues down 43%.