By Yasin Ebrahim 

Investing.com — Robinhood jumped in afterhours trading Thursday after Sam Bankman-Fried, the chief executive of crypto exchange FTX, acquired a 7.6% stake in the trading platform, according to a Thursday filing with the Securities and Exchange Commission.

Robinhood Markets Inc (NASDAQ: ) rose more than 20% after the release. 

Emergent Fidelity Technologies, which is owned by Bankman-Fried, invested about $648.3 million in Robinhood, according to the filing. 

Robinhood has been struggling to replicate the growth seen in the pandemic, when the trading platform become a hit with young first-time stock traders. The company’s most recent report reported that it suffered a 1,000,000 user loss and 73% drop in equity trading revenue.

In order to reduce costs and ensure steady growth, the platform had to cut a significant portion of its workforce. These cost-saving initiatives will likely pay off in the very near future.    

“[W]”We believe sustainable profitability remains at most a year off, so investors will want to see tangible improvements before we warm back to the stock,” Deutsche Bank wrote in a note shortly after Robinhood’s announcement in late April.