Investing
HOOD Up 3% as Firm Buys Back $605M Worth of its Shares Sezied from SBF’s Company
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Robinhood is all set to claim its shares back from Fidelity Technologies, the company co-founded by FTX’s Sam Bankman-Fried. The firm revealed new details about its recently minted pact, adding that it had entered into a repurchase agreement with the United States Marshal Service to claim its shares worth $605 million.
Robinhood to Buy Back Shares Worth $605 Million From Fidelity Technologies
After indulging in several legal discussions, Robinhood has finally struck a repurchase deal with the United States Marshal Service to purchase back its shares worth $605 million. Robinhood’s shares were earlier seized by the agency and were later transferred to USMS after the dramatic FTX collapse that jolted the cryptocurrency domain in its entirety.
The online brokerage firm quickly shared additional details, adding that the US District Court for the Southern District of New York has approved the sale of its 55.3 million shares for $10.96 per share.
The company later shared that it has paid $605 million to purchase its stake back from Fidelity, which constitutes 6.1% of its market capitalization.
Robinhood Shares Up 3% On the News
Robinhood’s shares are up 3% as news of the firm buying back its stake from Fidelity went viral on multiple social media circuits. The firm’s shares currently trade for $11.21, displaying a positive market stance.
Robinhood was engaged in vigorous talks with the US Department of Justice to claim back its stake that the firm had earlier sold to Bankman Fried’s Fidelity Technologies. At the time of the sale, FTX was thriving, with plans to expand globally. It was later revealed that FTX had received hundreds of millions of dollars from Alameda to purchase a significant stake in Robinhood.
Robinhood first revealed its intention to buy back its shares from Fidelity in February 2023. The firm had held multiple sessions with the DOJ to claim back its stock from the bankrupt firm, which has now been finally cleared for the firm to claim and keep.
This article originally appeared on The Tokenist
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