NewsMV
Prediction markets are now Robinhood's fastest-growing business line, and the trading app is buying equity in the exchange that powers it.
The company announced Tuesday it will take minority stakes in Crypto.com (CRO) and OG.com, the CFTC-regulated prediction markets exchange Crypto.com spun off in February as a separately capitalized company, with OG.com set to clear and settle Robinhood's event contract volume starting September 8.
Shares of Robinhood (HOOD) gained about 3.4% in premarket Tuesday to roughly $126.
The equity stakes in both Crypto.com and OG.com are priced in line with Citadel Securities' July investment, the first institutional funding Crypto.com has taken, which valued the exchange at $20 billion.
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