Trading platform Robinhood Markets (HOOD) is acquiring a 90% stake in MIAXdx, a regulated exchange operated by Miami International Holdings (MIAX), via a newly formed joint venture with Susquehanna International Group. The move will help Robinhood strengthen its position in the rapidly growing prediction markets. MIAX will continue to hold the remaining 10% stake in MIAXdx. HOOD stock was up 1.6% in Wednesday’s pre-market trading.
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A prediction market is a platform where participants trade event-based contracts, with prices reflecting the probability of events. Last year, prediction markets scored a major win when a U.S. federal court dismissed a Commodity Futures Trading Commission (CFTC) prohibition on election betting.
Robinhood Seeks Growth in Prediction Markets
Robinhood is launching a futures and derivatives exchange and clearinghouse, which will be managed by its new joint venture with Susquehanna. HOOD will serve as the controlling partner of the joint venture, while Susquehanna will be a key partner and “day-one liquidity provider.” The exchange is expected to begin its operations in 2026.
The acquisition of MIAXdx, a CFTC-licensed Designated Contract Market (DCM), Derivatives Clearing Organization (DCO), and Swap Execution Facility (SEF), will help the joint venture accelerate delivery of its services and capture growth opportunities in the prediction markets. The deal is expected to close in the first quarter of 2026. It is worth noting that Miami International acquired MIAXdx, which was then known as LedgerX, from the FTX bankruptcy proceedings in 2023 for $50 million.
Robinhood highlighted that prediction Markets have become its fastest-growing product line by revenue. The company said that in just one year after launch, over 9 billion contracts were traded by more than 1 million HOOD customers. “Robinhood is seeing strong customer demand for prediction markets, and we’re excited to build on that momentum,” said JB Mackenzie, HOOD’s VP and General Manager of Futures and International.
Is HOOD a Good Stock to Buy?
Currently, Wall Street has a Moderate Buy consensus rating on Robinhood Markets stock based on 14 Buys, six Holds, and one Sell recommendation. The average HOOD stock price target of $151.63 indicates 31.2% upside potential. Despite the 17% pullback over the past month, HOOD stock is still up by an impressive 210% year-to-date.
