A firm with associations to the now-defunct cryptocurrency exchange FTX is set to be acquired by Robinhood Markets and Susquehanna International Group as they aim to expand into the prediction market sector.
As reported by Reuters on Tuesday, Robinhood and Susquehanna are set to acquire a 90% stake in LedgerX, one of the few solvent companies linked to FTX after its bankruptcy in 2022. This announcement followed Robinhood’s debut of a futures and derivatives platform aimed at prediction markets.
Robinhood declared its intention to acquire a majority stake in MIAXdx, an exchange and clearinghouse regulated by the US Commodity Futures Trading Commission. Previously known as LedgerX, MIAXdx was purchased by Miami International Holdings (MIAX) for $50 million in 2023 during FTX’s bankruptcy. MIAX is expected to maintain a 10% stake in the company, as noted by Reuters.
“Through our retained equity stake, the transaction announced today will provide MIAX with access to the growing prediction markets on an expedited basis,” said MIAX CEO and chair Thomas Gallagher.
The acquisition positions Robinhood to challenge established prediction platforms like Kalshi and Polymarket. Interest in prediction markets has surged, particularly influenced by the anticipation of bets on upcoming US elections in 2024.
Not the Only Player in the Game
Since the federal court allowed Kalshi to offer event contracts related to US elections in October 2024, significant investments have flowed into this market from both cryptocurrency and traditional firms.
Kalshi recently saw its valuation rise to $11 billion following a funding round led by Sequoia Capital and CapitalG. Additionally, Polymarket secured a regulatory approval from the CFTC to operate on a US-intermediated trading platform on Tuesday.
Reports point to cryptocurrency exchange Coinbase also developing a prediction markets platform, in collaboration with Kalshi.
After the announcement, Robinhood’s shares increased by approximately 8%, trading at $125.24 at the time of publishing.
