DailyCoin
Published Feb 09, 2023 12:45PM ET
Updated Feb 09, 2023 02:00PM ET
Robinhood Swoops in for a Stock Buyback from FTX’s Bankman-Fried
Robinhood is reclaiming its ownership after FTX and Emergent Fidelity both declared bankruptcy. With FTX filing for protection in November 2022 and Emergent Fidelity on February 3rd, 2023, Robinhood has been allowed to purchase back the 55 million shares, worth $578 million at the time of writing, acquired by FTX through Emergent Fidelity Technologies in May of the previous year.
The shares in question were initially purchased by FTX with loans from sister company Alameda Research and served as collateral for a loan from BlockFi. However, disputes arose over the shares, and the U.S. Department of Justice eventually seized them on January 9th.
Despite the challenges posed by the ongoing disputes, Robinhood remains optimistic about its business and prospects. In the fourth quarter of 2022, Robinhood’s net revenue increased by 5% to $380 million, despite reporting an overall net loss of over $1 billion in 2022.
Source: Google (NASDAQ:GOOGL) Finance
Robinhood’s cryptocurrency-based transaction revenues from its “Robinhood Web3 Wallet” declined by 24% to $39 million in the previous quarter. However, the firm could still roll out the Robinhood Web3 Wallet to more than one million waitlisted users during the same period.
The decrease in crypto-related revenue does not detract from Robinhood’s commitment to growth, as evidenced by its latest buyback and expanding user base. This indicates a positive outlook for the company’s future in the financial industry.
Robinhood is a significant player in cryptocurrency, offering a popular platform for trading and investing in cryptocurrencies. The repurchase of the shares by Robinhood and its positive outlook for the future, despite recent financial struggles, are significant indicators of the stability and viability of the company, which can impact users’ confidence.
Read about Robinhood’s latest launch below:
Robinhood Launches Upgraded Wallet Amid Shares Controversy
For more information about the seized shares:
BlockFi and FTX Lay Claim to Robinhood Stocks to be Seized by US DOJ
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Written By: DailyCoin
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