Robinhood Markets Inc (NASDAQ:HOOD) shares leapt overnight amid rumours that global crypto exchange FTX is considering bidding for the Silicon Valley-based online trading app.
As rumours swelled the trading platform could be evaluating the move internally, shares of Robinhood closed 14% higher on Monday to end at US$9.12.
FTX is still weighing the possibility but has not yet made an offer, Bloomberg said.
When asked by media, FTX clarified it is not in active discussions to acquire Robinhood.
"We are excited about Robinhood’s business prospects and potential ways we could partner with them," FTX chief executive Sam Bankman-Fried said in a statement to Bloomberg.
"That being said, there are no active M&A conversations with Robinhood."
Shares in Robinhood dropped 5% in after-market trading.
Bankman-Fried disclosed his 7.6% stake in Robinhood in a 13D Securities and Exchange Commission filing in May, with the stake valued at about US$648mln at that time.
Filings such as this are used when someone acquires more than 5% of a company, but could also indicate a potential takeover.
Robinhood's chief executive Vlad Tenev and chief creative officer Baiju Bhatt together own about 8% of the company and hold over 50% of its voting power.
FTX is also reportedly acquiring a stake in beleaguered crypto lending firm BlockFi and provided it a US$250mln line of credit, which the crypto industry largely regarded as a 'bailout'.